Credit Suisse has been sued in New York by the Dutch pension fund Stichting Pensioenfonds ABP over losses on investments in mortgage securities, media reports said.

Credit Suisse sold securities that were backed by low-quality loans and turned out to be “far riskier” than promised, ABP said in a complaint filed on 29 December in a Manhattan court.

The pension fund said the firm knew of “the wholesale and systematic abandonment” of underwriting guidelines by loan originators, leading to high default and delinquency rates by borrowers. ABP said it has suffered “substantial losses” on the securities and that it is increasingly probable that it would not obtain the full payments it expected.

The Swiss bank made no comment when contacted by this publication.