FHFA settles with Société Générale for $122M
Settles charges of securities violations in selling private label MBS
The Federal Housing Finance Agency reached a settlement with Société Générale, related companies and specifically named individuals for $122 million.
The FHFA, as conservator of Fannie Mae and Freddie Mac, resolved claims arising from a lawsuit alleging violations of federal and state securities laws in connection with private-label mortgage-backed securities purchased by Fannie Mae and Freddie Mac during 2006.
Under the terms of the agreement, Société Générale will pay roughly half of the settlement monies to Fannie Mae and half to Freddie Mac and certain claims against Société Générale related to the securities involved will be released.
This is the eighth settlement FHFA has announced in relation to the 18 PLS lawsuits the agency filed in 2011. FHFA remains committed to satisfactory resolution of the remaining actions.