subprime mortgages News

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 …

S&P Expects Government Lawsuit Over Its Pre-Crisis Credit Ratings

Standard & Poor’s said it expects to be the target of a U.S. Department of Justice civil lawsuit over its mortgage bond ratings, the first federal enforcement action against a credit rating agency over alleged illegal behavior tied to the …

Bank of America Employees Could Face Charges in Mortgage Fraud Case

Bank of America Corp. employees could face civil fraud charges as part of a federal lawsuit accusing the bank of causing taxpayers more than $1 billion in losses by selling toxic mortgage loans to Fannie Mae and Freddie Mac, a …

Civil Liberties Group Suing Morgan Stanley Over Mortgages

The American Civil Liberties Union is filing what it says is the first lawsuit against an investment bank, Morgan Stanley, alleging discrimination for packaging subprime mortgage loans into securities. The ACLU and other plaintiffs will file the case on behalf …

Banks Say Settlements Aren’t Slowing Financial Crisis Liability Suits

As U.S. authorities seek to make Wall Street pay for its role in triggering the financial crisis more than four years ago, banks are starting to fight back, frustrated that they are being asked to pay more than once for …

BofA Whistleblower to Receive $14.5M in Mortgage Case

A former home appraiser will receive $14.5 million as part of a whistleblower lawsuit that accused subprime lender Countrywide Financial of inflating appraisals on government-insured loans, his attorneys said Tuesday. Kyle Lagow’s lawsuit sparked an investigation that culminated in a …

Brokerage’s Strategy Could Redefine ‘Customer’ in Securities Arbitration Cases

A series of victories by Morgan Keegan & Co. is calling into question who can be considered a “customer” in securities arbitration cases. Most recently, a case involving a partner in the Lion Fund, a hedge fund, led to an …

Liberty Mutual Sues Goldman Over Freddie Mac Investment Losses

Boston-based Liberty Mutual Insurance Co. and several of its subsidiaries have sued investment banker Goldman, Sachs & Co. for “making materially misleading statements and omissions” in a preferred stock offering of mortgage lender Freddie Mac in November 2007. The insurers …