residential mortgage backed securities News

Prudential Fraud Claims Against Goldman Sachs Over Securities Dismissed

Prudential Financial Inc. agreed to dismiss its claims that Goldman Sachs Group Inc. engaged in fraud and racketeering in selling $375 million of residential mortgage-backed securities, a court order shows. U.S. District Judge Susan Wigenton signed a dismissal order yesterday …

Allstate Settles Lawsuit Against Deutsche Bank Over Mortgage Securities

Deutsche Bank AG and Allstate Corp. settled a suit the insurer brought that accused the bank of misrepresentations and omissions in connection with loans backing $185 million in mortgage securities. Allstate sued the Frankfurt-based lender in New York state Supreme …

S&P Wins Transfer of Ratings Lawsuits by States to Federal Court in New York

Standard & Poor’s and its parent company McGraw Hill Financial Inc. on Thursday won a ruling that moves 15 lawsuits in which they were accused of fraudulently inflating credit ratings to a single federal court. The U.S. Judicial Panel on …

AIG Ends a Bailout-Related Lawsuit Against N.Y. Federal Reserve

American International Group Inc. has agreed to end litigation against the Federal Reserve Bank of New York over whether the insurer retained the right after its 2008 taxpayer-funded bailout to sue over losses on residential mortgage-backed securities. In a May …

States Drop Challenge to $8.5B Bank of America Deal; AIG Still Opposes

The New York and Delaware attorneys general and the U.S. housing regulator on Friday dropped their objections to Bank of America Corp.’s proposed $8.5 billion settlement with investors in Countrywide mortgage-backed securities, according to court filings. Other parties, including American …

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 …