More payment during the financial crisis
Morgan Stanley pays 1.25 billion
in a lawsuit challenging questionable mortgage transactions, the U.S. bank Morgan Stanley has agreed to pay $ 1.25 billion (925 million euros). The comparison has been agreed with the Supervisory Authority FHFA, it said in a stock exchange release. There was an agreement in principle has been made, still needed to be finally confirmed by both sides.
It is the latest payment of a Wall Street bank for mortgage securities. Investors such as Fannie Mae and Freddie Mac had rows of felt ripped off in this type of investment. The allegation is that banks would have the home loans contained presented too rosy. In the financial crisis, the value of mortgage securities had collapsed. Morgan Stanley had already come a billion amount of such disputes, the reserves must, however, increase to $ 150 million. Thus, the profit of the last year is diminished retroactive. Earlier, several other U.S. banks had paid large sums of money for an out of court settlement in the case.
JP Morgan Chase also pays millions
The U.S. bank JPMorgan Chase will pay again a million sum due geschönter home loans. The determined as part of a settlement sum amounts to $ 614 million, said the U.S. Justice Department in Washington. JP Morgan Chase has acknowledged that more than a decade, thousands of loans had been granted that did not meet the requirements of state security, the ministry said. The state had “substantial losses” incurred when he had to take over.
addition to the settlement payment to JPMorgan Chase declared also agreed to reform its business practices. In a statement, the bank described the agreement as a “significant step in the efforts of the company to leave the historical mortgage-related problems behind.”
In the fall, the bank had with the Justice Department because of dubious mortgage transactions on a Comparison over $ 13 billion (almost ten billion euros) agreed. It was the largest ever agreement concluded between the authorities and a company. JPMorgan admitted to have investors the quality of the papers misrepresented. In addition, JPMorgan had in another judicial dispute over mortgage transactions in 21 major investors on a settlement payment of $ 4.5 billion agreed.
early January, the Bank also agreed to a, as a former bank of convicted stockbroker Bernard Madoff victims of the fraud damages in the amount of $ 1.7 billion to pay. To pay the numerous legal proceedings, JPMorgan has set aside over the past year a total of 23 billion dollars (about 17 billion euros).
The bank said that the comparison was another important step of company to make the case the home loans behind. Since reserves had been used for the comparison already, the payment will probably not have a major impact on the finances. JP Morgan Chase has already paid multiple penalties for geschönter home loans
state. 02/05/2014 10:00 clock
Morgan Stanley pays 1.25 billion in mortgage dispute
No comments:
Post a Comment