The Swiss banking behemoth neither confirmed nor denied media claims about a possible payment when contacted by this publication.

Credit Suisse remained tight-lipped when contacted by this publication over media reports that it has been asked by the US government to pay between $5 billion and $7 billion to settle a probe over its sale of toxic mortgage securities in the run-up to the 2008 financial crisis.

The size of the suggested settlement, set by the US Department of Justice, indicates that the cost to the Zurich-headquartered bank may be higher than analysts initially expected and could explain why an anonymous source reportedly told Reuters that management has been seeking a smaller penalty.

“Credit Suisse is confident of reaching a better solution,” an unnamed source reportedly told the news service.

Signalling that negotiations may be coming to a close, US Attorney General Loretta Lynch last week met with Credit Suisse's chief executive Tidjane Thiam, another person familiar with the matter reportedly told Reuters.

When contacted by this news service, a spokesperson for the bank declined to comment and would neither confirm nor deny the information, but added: “Perhaps we will be able to offer a comment soon.” The Department of Justice's press team was out of office at the time of writing but has been contacted for comment. 

The penalty originates from a 2012 initiative launched by US President Barack Obama to hold banks accountable for selling mortgage debt while misleading investors about the risks involved, a practice that contributed to the collapse of the economy eight years ago.

The collective fines, totalling $46 billion, are set to deliver another blow to European lenders, many of which still remain fragile from the worst financial crisis since the 1930s.

Earlier this month, the Swiss banking giant's securities arm was fined $16.5 million by a US regulator over shortcomings in its anti-money laundering regime.