Items Tagged with 'Financial crisis'

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Moody’s reaches $864 million settlement over RMBS credit ratings

Settlement dates back to financial crisis
Moody’s Corp. agreed to pay nearly $864 million to settle claims for its role providing credit ratings for Residential Mortgage-Backed Securities and Collateralized Debt Obligations that contributed to the financial crisis. "Moody’s failed to adhere to its own credit rating standards and fell short on its pledge of transparency in the run-up to the Great Recession," said Principal Deputy Associate Attorney General Bill Baer. 
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U.S. tries a second time to convict MBS trader Jesse Litvak

Appeals court tossed out first conviction
The U.S. is trying a second time to convict former Jefferies managing director Jesse Litvak. In July 2014, Litvak was sentenced to two years in prison for lying to clients about mortgage-backed securities, but the case quickly turn a turn the opposite direction when an appeals court tossed out his conviction. Here goes round two.
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NCUA reveals it paid $1 billion to lawyers in fight to recover credit union crisis losses

Total settlement agreements top $4.3 billion
In 2013, the National Credit Union Administration filed suit against some of the world’s biggest banks over the sale of nearly $2.4 billion in faulty residential mortgage-backed securities to several corporate credit unions, which subsequently failed during the financial crisis, due in part to losses from those very same mortgage bonds. The total amount recovered for the failed credit unions in those settlements is more than $4 billion, but for the first time, the NCUA revealed just how much it cost to reach those settlements.
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Banks finally want to originate mortgages again

Loans now profitable
A lot of banks took a long hard look at mortgage origination after the financial crisis and decided they want to clean their hands of the industry that fueled America’s collapse. Now, nearly a decade later, banks are starting to rethink that decision to stay away.
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FBR: Wells Fargo's next move is critical, for the bank and for the industry

CEO John Stumpf to face grilling on Capitol Hill
What happens over the next few days will go a long way in determining how Wells Fargo, and the banking industry as a whole, will weather the storm currently swirling around the megabank from the “widespread unlawful” practices of more than 5,000 former employees who opened more than 2 million fake accounts in order to get sales bonuses.
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Goldman Sachs passes first round of compliance testing for $5 billion settlement

First monitor report finds consumer relief efforts are "logical and appropriate"
Goldman Sachs is meeting its consumer relief requirements as part of its $5 billion settlement reached in April over toxic mortgage bonds, a new report from the settlement’s monitor showed. The report, published Friday by Eric Green, who serves as independent monitor of the settlement, showed that Goldman Sachs passed its first round of compliance testing for the consumer relief portion of the settlement.
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Senator Warren calls DOJ's financial crisis response an "abysmal failure"

Wants to know why executives got off "scot-free"
Thursday, Sept. 15, 2016 marked the eight-year anniversary of Lehman Brothers declaring bankruptcy, sending shockwaves through the economy and sending the U.S. into a recession. Sen. Elizabeth Warren, D-Mass., used the anniversary of the “failure of the fourth-largest U.S. investment bank” to loudly question again why individuals were not held responsible for the conduct that led to the financial crisis, and this time she did it armed with some disconcerting new information.
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