Hedge fund Deer Park Road Management Company has paid a $5 million penalty to settle charges from an SEC investigation that alleges its policies and procedures governing the valuation of fund assets had “compliance deficiencies.” In addition, the firm’s chief investment officer Scott E. Burg has paid a $250,000 penalty as part of the settlement… Read More >>
UBS to Challenge DoJ’s RMBS Fraud Charges
The United States Department of Justice has filed a civil complaint in the Eastern District of New York federal court, charging UBS AG and several of its U.S. affiliates with having “defrauded investors throughout the United States and the world in connection with its sale of residential mortgage-backed securities (RMBS) from 2006 through 2007.” From… Read More >>
Nomura Pays $480M for Allegedly Misleading RMBS Investors
The U.S. Justice Department has settled with Nomura Holding America Inc. and its affiliates over federal civil claims that Nomura allegedly misled investors via the marketing, sale and issuance of residential mortgage-backed securities (RMBS) between 2006 and 2007, government and bank officials confirm. The settlement will cost Nomura $480 million, and Nomura officials say firm… Read More >>
SEC Bars Ex-Goldman Sachs Trader from Securities Industry
The SEC reports that Edwin Chin, the former head trader in residential mortgage-backed securities (RMBS) at Goldman Sachs, has “agreed to be barred from the securities industry and pay $400,000 to settle charges that he repeatedly misled customers and caused them to pay higher prices.” That payment represents $200,000 in disgorgement, $50,000 in prejudgment interest… Read More >>
CalPERS Claims Victory in Legal Battle with Moody’s
Claiming a precedent-setting victory, the California Public Employees’ Retirement System (CalPERS) has concluded its case against the ratings agency Moody’s and its allegedly erroneous AAA ratings for illiquid structured investment vehicles that spurred losses for the pension fund and laid the groundwork for the Great Recession. As a result of the lawsuit settled last week,… Read More >>
Morgan Stanley’s RMBS Penalty Payments Hit $5 Billion
Morgan Stanley faces a total tally of $5 billion in penalties as it settles claims with federal and state government authorities over charges that the firm misled investors via its marketing, sale and issuance of residential mortgage-backed securities (RMBS) during the years leading up to the Great Recession. The penalties and related payments stem from… Read More >>
Goldman Sachs to Pay $5.2 Billion to Settle Key Cases
The Goldman Sachs Group will be writing a lot of checks during 2016 as it has agreed to separate settlements with the SEC and the Residential Mortgage-Backed Securities Working Group of the U.S. Financial Fraud Enforcement Task Force (RMBS Working Group) that will likely total approximately $5.2 billion, and will impact the firm’s bottom line…. Read More >>
Billion-Dollar Settlements Sting A-List Banks and Investors
The best known aphorism attributed to the late U.S. Senator Everett Dirksen, the honey-voiced Republican Minority Leader in the LBJ era, is “a billion here, a billion there, and pretty soon you’re talking real money.” One wonders what Dirksen would make of the multi-billion-dollar settlements that Goldman Sachs, Bank of America and other giant banks… Read More >>
