Items Tagged with 'mortgage bonds'

ARTICLES

  • RBS meets $400 million consumer relief goal by handing out $130 million in relief

    Bank completes consumer relief portion of its $500 million settlement with New York
    Just six months after the Royal Bank of Scotland reached a $500 million settlement with the state of New York over the bank’s mortgage practices in the run-up to the housing crisis, RBS has reached the settlement’s $400 million consumer relief goal, by providing just under $130 million in actual relief.
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  • SEC hits Moody’s with $15 million fine over mortgage bond ratings

    Credit ratings agency will also pay $1.25 million for “ratings symbol deficiencies”
    In the wake of the financial crisis, the country’s largest credit ratings agencies all touted new ratings methodologies that were, in theory, designed to guard against the sorts of malfeasance that surrounded mortgage bond ratings in the run-up to the crisis. But it looks like the new mortgage bond rating system at one of the nation’s largest credit ratings agencies was far from perfect.
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  • Feds drop case against bond trader Jesse Litvak

    5-year battle reaches an end
    For bond trader Jesse Litvak, the past five years have been a whirlwind of court cases and even jail time for his role in the financial crisis. Now, however, the federal government announced it is dropping its case against Litvak after two different convictions of fraud were overturned in the federal appeals court.
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  • RBS to pay $20 million to Illinois pension funds over crisis-era mortgage bonds

    New settlement is bank’s eighth such settlement in recent years
    For the third time this year, the Royal Bank of Scotland is about to pay up over the bank’s mortgage practices in the run-up to the housing crisis. RBS has already reached a nearly $5 billion settlement with the Department of Justice and a $500 million settlement with the state of New York. Now, the bank has agreed to a new $20 million settlement with the state of Illinois.
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  • Merrill Lynch ordered to pay $15.7M for cheating customers in mortgage bond trades

    SEC orders company to pay up for misleading customers
    Merrill Lynch will pay $15.7 million to settle allegations that its employees misled mortgage bond customers and overcharged those customers residential mortgage-backed securities trades during a three-year period from 2009 through 2012, the Securities and Exchange Commission announced this week.
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  • Former Cantor Fitzgerald mortgage bond trader found not guilty of securities fraud

    Feds rebuked twice in one week in pursuit of RMBS traders
    It has not been a good week in court for the federal government and its pursuit of fraud charges against mortgage bond traders. On Thursday, the Court of Appeals for the Second Circuit tossed the fraud conviction of former Jefferies mortgage-backed securities trader Jesse Litvak, marking the second time the government has failed in its five-year pursuit of Litvak. But that wasn’t the only defeat the government took in court on Thursday.
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  • Barclays agrees to pay $2 billion to settle crisis-era RMBS fraud charges

    Two subprime mortgage bond traders also fined $2 million
    Barclays Capital will pay $2 billion to the federal government to settle charges brought against the bank by the Department of Justice, which accused the company of misleading investors about the quality of the underlying subprime and Alt-A mortgages in $31 billion in mortgage bonds, which, as the DOJ put it, “proved to be catastrophic failures.”
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  • UBS reaches $230 million settlement with New York over toxic mortgage bonds

    Required to provide $189 million in consumer relief
    For the second time this month, the state of New York has reached a massive settlement with a bank that ends in “BS.” First, RBS reached a $500 million settlement with the state. Now, UBS agreed to a $230 million settlement covering UBS' mortgage bond activities in the run-up to the financial crisis.
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