FHFA recovered nearly $8bn in settlements in 2013

by Ryan Smith02 Jan 2014
The Federal Housing Finance Agency announced Thursday that it recovered nearly $8bn in settlements in 2013.

The FHFA sought the settlements from companies that sold private-label securities to Fannie Mae and Freddie Mac between 2005 and 2007. In 2011, the agency sued 18 financial institutions over the securities, alleging securities law violations and, in some cases, fraud.

The biggest payout came from perpetual defendant JPMorgan Chase, which agreed last year to pay the FHFA $4bn over private-label securities sales. Other payouts came from UBS, which agreed to fork over $885 million; Deutsche Bank, which was tapped for more than $1.9bn, and Citigroup, which agreed to pay $250 million. Wells Fargo agreed to a $335 million settlement in a non-PLS suit.

Several other PLS suits are still being litigated. Currently, the FHFA is suing Bank of America, Goldman Sachs, Merrill Lynch, Credit Suisse and Morgan Stanley, among others.
 

COMMENTS

  • by RW | 1/2/2014 9:38:40 AM

    Where is the $$?
    Who benefited from these "settlements"?

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