Bernanke, who headed the U.S. central bank from 2006 to 2014, told the BBC that the Department of Justice should have attempted to hold individuals accountable for the crisis instead of companies because it was the decisions of individuals, and not the companies themselves, that brought on the crisis.
Read More »Top Democratic Lawmaker Wants More Information from Big Banks on Settlements
Sen. Sherrod Brown (D-Ohio), ranking member of the Senate Banking Committee, has written a letter to more than a dozen big banks and investment banking firms requesting more information on settlement they have entered into with 15 government enforcement agencies since January 1, 2005.
Read More »Fifth Third to Pay $85 Million to Settle Claims of Fraud on FHA-Insured Loans
Fifth Third made a voluntary disclosure of approximately 1,400 loans from 2003 to 2013 that the bank had certified as eligible for FHA insurance that were later found to contain material defects that would have made those loans ineligible for FHA insurance.
Read More »Monitor Credits Citi With $162 Million Toward Settlement Obligation
Citigroup earned credit for $162.7 million in consumer relief toward fulfilling its $2.5 billion obligation under the terms of a July 2014 settlement with the U.S. Department of Justice and five states for selling toxic residential mortgage-backed securities to investors before the financial crisis, according to a report from the settlement monitor released Thursday.
Read More »Monitor Credits Bank of America with $1.19 Billion Toward Settlement Obligation
Green reported that most of the $1.181 billion credit Bank of America was credited with in Q1 was based on 2,938 first lien principal forgiveness loan modifications. Those modifications, which include principal forgiveness, interest rate reduction, and bringing loans current without penalty, are intended to make mortgages more affordable for struggling homeowners.
Read More »Monitor Credits Chase With $3.3 Billion in Relief Toward Settlement Obligation
The report released Thursday includes Chase's self-reported gross consumer relief and the amount of consumer relief credit the bank claimed for the first quarter of 2015, an amount that has not yet been validated by Smith. According to Chase's internal review group, the bank provided 6,671 borrowers with an additional $2.31 million in creditable consumer relief during the first quarter of 2015.
Read More »Justice Department, CFPB Settle With California Lender To Resolve Discrimination Claims
The U.S. Department of Justice and the Consumer Financial Protection Bureau (CFPB) have reached a settlement resolving allegations of discriminatory lending based on race on the part of California-based Provident Funding Associates, according to a joint announcement from the two government agencies.
Read More »Judge Approves JPMorgan Chase’s $500 Million RMBS Settlement With Pension Funds
JPMorgan Chase, the nation's largest bank, acquired Bear Stearns in March 2008 at a stock-only price of $236 million, or $2 per share. In their lawsuit, the pension funds accused Bear Stearns of selling $17.6 billion worth of toxic mortgage-backed securities to them in the run-up to the crisis. The terms of the settlement were approved by Judge Laura Taylor Swain in the U.S. District Court for the Southern District of New York (in Manhattan).
Read More »Morgan Stanley Says It Might Settle MBS Suit With Deutsche Bank for $292 Million
Deutsche Bank sued Morgan Stanley in April 2014, claiming that the New York-based investment firm breached a contract by misrepresenting the quality of about $735 million worth of loans held in a trust in in which Deutsche Bank was the trustee and Morgan Stanley was the sponsor.
Read More »Prudential Reaches Settlement With Bank of America, Merrill Lynch in RMBS Lawsuits
The claim was finally settled Wednesday, when both parties filed a stipulation of dismissal with prejudice. Though terms of the settlement were not stipulated in the court documents, they did say each party would be responsible for its own expenses stemming from the lawsuit.
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