Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
Morgan Stanley to pay $1.25B over 'faulty' mortgage bonds
WASHINGTON (2/10/14)--Wall Street firm Morgan Stanley and the Federal Housing Finance Agency have reached a $1.25 billion settlement to resolve alleged violations of federal and state securities laws.

Under the terms of the settlement, $625 million, each, will be paid to Fannie Mae and Freddie Mac. The settlement follows a suit that alleged Morgan Stanley misled Fannie Mae and Freddie Mac by selling faulty private-label mortgage-backed securities between 2005 and 2007.

The FHFA has filed 17 similar lawsuits. This is the seventh of those suits to be settled.

The National Credit Union Administration in September also sued Morgan Stanley and eight other institutions over the sale of nearly $2.4 billion in mortgage-backed securities to Southwest and Members United corporate credit unions.

The agency has sued a number of Wall Street banks in similar cases. In November, JP Morgan agreed to pay the NCUA $1.4 billion in a settlement over mortgage-backed securities issued, underwrote and sold to now-defunct corporate credit unions in 2006 and 2007. The wholesale lenders collapsed in 2009 due, in part, to the faulty instruments.
Other Resources

FHFA Settlement
RSS





print
News Now LiveWire
What role are #creditunions playing in @gatesfoundation's 2030 vision of financial services? Read #NewsNow Monday
1 day ago
Consumers fear inaccurate info lingers on credit reports, says @FTC study Read @CUNA's News Now: http://t.co/RzNLMnaROO
1 day ago
@PCUA has formed a @LinkedIn networking group for former bankers turned #creditunion employees.
1 day ago
.@politico reports Democrats haven't picked the city yet, but their 2016 convention will be held the week of July 25.
1 day ago
.@cuna, @DCUC_HQ urge @CFPB to exempt #CUs from changes to Military Lending Act rules cuz CUs aren't part of the targeted problem. NN Monday
1 day ago