NEW YORK: Swiss banking giant Credit Suisse paid $600 million to financial guarantee insurer MBIA to settle long-running litigation connected to the US subprime mortgage crisis, MBIA announced Thursday.

The agreement follows a ruling by a New York judge in favour of MBIA in the case concerning Credit Suisse’s representations to the company, which provided insurance for residential-backed securities ahead of the 2008 financial crisis.

MBIA said the court dismissed the suit following the settlement. The original case was filed in 2009.