Banks to pay millions more for mortgage crisis

by Justin da Rosa08 Jun 2015
Goldman Sachs and Morgan Stanley are reportedly nearing settlements for a billion dollar mortgage payment case.
According to a Wall Street Journal report, the two banks – and seven others –are set to finalize the details soon, though an exact timeframe has not been given. However, sources said the matter could be settled as early as the end of the month.
The report states that the expected settlement will fall somewhere between several hundred million dollars and $3 billion each, based on the size of the bank and the level of misconduct displayed.
According to International Business Times, “The agreement is part of a broader push by the US government to hold more Wall Street firms to account for the 2008 crisis after authorities ordered the three biggest American banks -- JPMorgan, Bank of America and Citigroup -- to pay a total of over $35bn in cash and consumer relief.”
This is the second major settlement for Morgan Stanley this year.
In late February, the bank agreed to a $2.6 billion settlement with the Justice Department for selling fraudulent mortgage securities prior to the 2008 economic recession.


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