Kumbaya at last? UBS AG and “several” of its United States-based affiliates have agreed to pay the United States Department of Justice $1.435 billion to settle their RMBS dispute, which dates to 2006-2007. In other words, just before the first rumblings of the Great Recession. Which was when we all learned that RMBS stands for… Read More >>
Hedge Fund Settles Charges of Deficient Valuation Policies
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 >>
Wells Fargo Settles RMBS Case with Justice Department
The U.S. Justice Department reports that Wells Fargo Bank, N.A., the fourth largest in the U.S. by assets, and several of its affiliates will pay a civil penalty of $2.09 billion, “based on the bank’s alleged origination and sale of residential mortgage loans that it knew contained misstated income information and did not meet the… Read More >>
Deutsche Bank’s Revamp Spurs 1,000 More Layoffs
Deutsche Bank will be cutting “another 1,000 jobs” after reaching an agreement with its group and general works councils “on role reductions in Germany,” and as part of its Strategy 2020, which calls for the elimination of 9,000 people from its work force. News of the additional layoffs has gotten little attention as major media… Read More >>
Deutsche Bank Says ‘Nein’ to $14B Fine
Negotiations have begun between Deutsche Bank and the U.S. Justice Department in an effort to resolve civil claims related to the German bank’s issuance and underwriting of residential mortgage-backed securities (RMBS) and related securitization activities between 2005 and 2007, confirm Deutsche Bank officials in response to media reports. The Wall Street Journal broke the story… 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 >>
SEC Collects $5.8M from DBRS for Monitoring Woes
U.S. regulator, the SEC has charged credit rating agency DBRS Inc. with misrepresenting its surveillance methodology for ratings of U.S. residential mortgage-backed securities and re-securitized real estate mortgage investment conduits during a three-year period. An SEC investigation found DBRS “misrepresented [that] it would monitor on a monthly basis each of its outstanding ratings of U.S…. Read More >>
Barclays to Settle RMBS Lawsuits for $325 Million
Barclays has reached a $325 million settlement with a U.S. government agency that regulates federal credit unions, bringing to an end a lawsuit against the Barclays Capital investment banking subsidiary over the sale of allegedly faulty residential mortgage-backed securities (RMBS) to corporate credit unions that allegedly failed as a result of the transactions. The agreement… Read More >>
