‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInJudge recommends dismissal of US suit against BofA — Reuters
A U.S. magistrate judge recommended dismissal of a lawsuit against over $850 million in mortgage debt, according to a court filing. A federal judge has recommended dismissal of a U.S. government lawsuit accusing Bank of America of defrauding investors into buying about $855 million of mortgage securities that soured during the global financial crisis. via […]
Hedge funds sniff for even bigger payouts from banks — NY Times
The provocative theory is that the big banks have not paid enough in recent legal settlements to make amends for their role in stoking the subprime housing boom and bust. Hedge funds, contending that the banks have so far underpaid, have bought subprime mortgage-backed bonds, which they hope will rise in value. That would happen […]
Wall Street Predicts $50 Billion Bill to Settle U.S. Mortgage Suits – NYTimes.com
Wall Street could pay nearly $50 billion to buy peace from federal authorities who are taking aim at the banks over their role in the mortgage crisis, according to interviews and a confidential analysis of the industry’s potential legal exposure. Bracing for a potential reckoning, the banks and their outside lawyers are quietly using JPMorgan […]
After JPMorgan, US plans to bring new bank fraud cases in early 2014 – Livemint
The US justice department plans to bring mortgage fraud cases against several financial institutions early in 2014, using as a template the case that ended last month in JPMorgan Chase and Co.’s $13 billion settlement, US Attorney General Eric Holder said on Wednesday. In an interview with Reuters, Holder would not say which companies or […]
Credit Crisis Litigation Update: It is Settlement Time — The Harvard Law School Forum on Corp. Gov. and Fin. Reg.
In this post, we discuss the recent trends of settlement activity and review some of the major settlements in credit crisis litigation. We also discuss mortgage settlements that are related to repurchase demands mainly between mortgage sellers and Fannie Mae and Freddie Mac. We then examine the current trends in filings, including the types of […]
Additional legal costs for big banks could top $100 billion – CNNMoney
U.S. banks might still be on the hook for more than $100 billion in additional fines and legal costs over bad mortgage loans sold during the financial crisis, according to a new estimate from credit rating agency Standard & Poor’s. via Additional legal costs for big banks could top $100 billion – CNNMoney
JPMorgan’s top lawyer fires back at regulators – The Term Sheet
Apparently, JPMorgan Chase’s top lawyer has some hurt feelings over his bank’s recent $13 billion fine. Stephen Cutler, speaking Friday morning at an industry conference, fired back at the government and said that the regulation of banks is spiraling out of control. He said regulators are wasting taxpayers’ resources by piling on infractions and issuing multiple fines […]
JPMorgan to pay NY $1Bn over mortgage crisis — New York Post
Thousands of underwater homeowners across New York may see some financial relief from the record-setting $13 billion mortgage- bond settlement Tuesday between JPMorgan Chase and federal and state regulators. More than $1 billion in relief will be heading to the Empire State, according to state Attorney General Eric Schneiderman. via JPMorgan to pay NY $1Bn […]
$13 Billion Settlement With JPMorgan Is Announced – DealBook
The civil settlement, which materialized after months of wrangling, resolves an array of state and federal investigations into JPMorgan’s sale of troubled mortgage securities to pension funds and other investors from 2005 through 2008. The government accused the bank of not fully disclosing the risks of buying such securities, which imploded in 2008 and helped […]
From Anonymity to Scourge of Wall Street – DealBook
The architect of a recent legal crackdown on Wall Street’s dubious mortgage practices was not the attorney general, a United States attorney or a rising star in the Justice Department. Instead, it was Leon W. Weidman, an unassuming 69-year-old career prosecutor, toiling away in anonymity 3,000 miles from Washington…. His pioneering use of the law […]