NEW YORK (TheStreet) -- Shares of Credit Suisse (CS) were slumping in late-morning trading as the Justice Department's request that German lender Deutche Bank (DB) pay $14 billion to settle an investigation into its mortgage-backed securities stokes concerns that other European banks will have to pay hefty fines.
Unlike their American counterparts such as JPMorgan (JPM) and Citigroup (C), European banks have not yet settled investigations into whether they sold second-rate mortgage-backed securities leading up to the financial crisis.
Both Deutsche Bank and Switzerland-based Credit Suisse sold about $14 billion of mortgage-backed securities that were named in the Federal Housing Finance Agency investigation into the securities, according to Bloomberg.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
Credit Suisse's weaknesses include its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
You can view the full analysis from the report here: CS
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.