Articles Tagged with ''Subprime mortgage crisis''

GE to pay $1.5 billion fine over WMC Mortgage subprime loans

Reaches settlement with DOJ
General Electric will pay a fine of $1.5 billion as part of a settlement with the Department of Justice over the pre-crisis lending activities of GE’s shuttered subprime lending unit, WMC Mortgage. The lender allegedly misrepresented the quality of the “majority” of its loans, which were sold to investors as part of residential mortgage-backed securities between 2005 and 2007.
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GE claims it reached $1.5 billion settlement with DOJ over WMC subprime loans

No official word from DOJ yet
It appears that General Electric may finally be close to putting its shuttered subprime lending unit completely in its past. It’ll just cost the company $1.5 billion to do so. GE revealed Thursday that it reached a tentative agreement with the Department of Justice that would see GE pay a fine of $1.5 billion for the lending activities of WMC Mortgage.
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GE books $1.5 billion for potential settlement with DOJ over WMC subprime loans

GE sold WMC in 2007, but problems still remain
General Electric may be facing a fine of at least $1.5 billion for the lending activities of its shuttered subprime lending unit, WMC Mortgage. GE revealed last week that it booked a reserve of $1.5 billion that may be used as a settlement with the Department of Justice over the company’s subprime lending from 2005 through 2007.
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Former Deutsche Bank head subprime mortgage bond trader fires back at U.S. fraud charges

Denies all charges, accuses government of ‘concocting a baseless theory of fraud’
Paul Mangione, the former head of subprime mortgage trading at Deutsche Bank who stands accused over overseeing systemic mortgage bond fraud during the run-up to the financial crisis, says that the government kowtowed to public pressure to see individuals held responsible for the financial crisis by filing lawsuit against him that is wrong, unfair, and without merit.
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Goldman Sachs settles Abacus CDO lawsuit

ACA Financial Guaranty Corp wanted $120 million
Goldman Sachs will pay an undisclosed amount of money to settle another lawsuit stemming from its actions in the run-up to the financial crisis. ACA Financial Guaranty Corp brought the lawsuit against Goldman Sachs, accusing the company of lying about a pool of securities backed by subprime mortgages tied to the failed Abacus collateralized debt obligation.
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SEC settles with former Fannie Mae execs over subprime fraud

The settlement amount is much smaller than you think
A 2011 lawsuit brought by the Securities and Exchange Commission against two former Fannie Mae executives is over. The execs were charged with misleading investors about the quality of subprime mortgages. However, it's the fine print that is leaving people wondering.
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It’s over: SEC settles with Freddie Mac executives

Former Freddie Mac CEO, others faced charges over subprime mortgages
The Securities and Exchange Commission’s high-profile case against several former Freddie Mac executives over allegedly misleading investors about the quality of subprime mortgages is now over, and it ended rather quietly.
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