SLAP ON THE WRIST DONT YOU THINK???? CITIGROUP, FREDDIE MAC SETTLE Citigroup has agreed to pay $395 million to Freddie Mac to settle claims on home loans it sold to the government controlled mortgage finance company. The agreement involves 3.7 million mortgages sold from 2000-2012. Freddie and its bigger sibling, Fannie Mae pressed Citigroup and other big banks to take back mortgages they sold, which soured in the housing bust. Citigroup agreed to pay $968 million to settle similar claims from Fannie. Other banks have made similar settlements, including Bank of America which paid $2.6 Billion in 2011. On the consumer front, charter members of the Big Boys Club JP Morgan (which came through the financial crisis in better shape than most) is in talks with several states and federal agencies about a proposed $11 billion settlement of regulatory investigations related to its handling of mortgage backed securities in the years leading up to the 2008 crisis. Under the proposal $7 billion in cash & $4 billion in relief would be paid/provided to Americans who lost their homes or who are underwater on their mortgages. Negotiations have been ongoing for the last year. (Source Paul Davidson, USA Today)
Posted on: Tue, 08 Oct 2013 20:42:34 +0000
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