mortgage securities News

AIG Settles for $650M from BofA in Mortgage Securities Fraud Case

Bank of America agreed to pay American International Group Inc. $650 million to settle long-running legal disputes over defective mortgage-backed securities sold in the run-up to the financial crisis. The deal, which the parties announced early Wednesday, ends securities fraud …

Banks Facing $100B More in Costs to Settle Mortgage-Related Cases: S&P

The largest U.S. banks may need to pay out up to an additional $105 billion to settle legacy mortgage-related issues, but have a capital cushion that would help them absorb these losses, according to a report by ratings agency Standard …

Allstate, Citigroup Settle Mortgage Securities Lawsuit

Allstate Corp. and Citigroup Inc. agreed to settle a lawsuit filed by the insurer in New York state court accusing the bank of fraudulently selling hundreds of millions of dollars of mortgage-backed securities. Allstate, the largest publicly traded U.S. home …

U.S., States Weigh Suing Moody’s Over Mortgage Ratings

The U.S. Justice Department and multiple states are discussing also suing Moody’s Corp. for defrauding investors, according to people familiar with the matter, but any such move will likely wait until a similar lawsuit against rival Standard and Poor’s is …

Government’s Case Against S&P: Ratings Stopped Making Sense

Barely two weeks after the big subprime lender New Century Financial Corp. went bankrupt, a top Standard & Poor’s executive assured Congress that her employer could be counted on to sound the alarm for the next credit disaster. S&P ratings …

U.S. Hits S&P with $5 Billion Fraud Lawsuit Over Mortgage Securities Ratings

The U.S. government is seeking $5 billion in its civil lawsuit against Standard & Poor’s, accusing the ratings service of defrauding investors, in one of the most ambitious cases yet from the Justice Department over conduct tied to the financial …

FDIC Sues Big Banks Over Mortgage Securities

The government has sued several big banks over toxic mortgage securities they issued that were bought by two small Illinois banks which failed in May 2009. The Federal Deposit Insurance Corp., which seized the two banks when they failed, filed …

In Win for BofA, $8.5B Mortgage Settlement Sent Back to New York Court

Bank of America Corp. won a victory when a U.S. appeals court ruled that a proposed $8.5 billion settlement with investors in mortgage-backed securities should be reviewed in New York state court, not federal court. Bank of America, the nation’s …

BofA Mortgage Securities Case Still Winding Its Way Through Courts

Legal wrangling over the proposed $8.5 billion settlement of some of Bank of America Corp.’s mortgage-backed securities liability could drag through the courts for years, a top appeals court judge said during arguments in the case. The 2nd U.S. Court …

Judge Certifies Investor Class Action Against Goldman Sachs

Goldman Sachs Group Inc. was ordered by a federal judge to face a securities class-action lawsuit accusing it of defrauding investors about a 2006 offering of securities backed by risky mortgage loans from a now-defunct lender. U.S. District Judge Harold …