Newsroom
July 14, 2014
Citigroup to pay $7B in MBS case
July 15, 2014 – Citigroup will pay $7 billion in a settlement with the Justice Department over claims that the entity misled investors about the riskiness of some mortgage-backed securities sold before the 2008 financial crisis.
The deal was reached over the weekend and requires the firm to pay $2.5 billion in relief to consumers. Bloomberg reported that of the $7 billion, the firm will pay $4 billion to the Justice Department, about $300 million to state attorneys general and about $200 million to FDIC.
The Justice Department's investigation into the sale of faulty MBS also extended to Bank of America Corp. and JPMorgan Chase. JPMorgan Chase agreed to pay $13 billion in November to settle similar federal and states allegations.
In November, NCUA recovered $1.4 billion in the JPMorgan settlement for a wide range of activities undertaken during the housing downturn, including the sale to corporate credit unions of faulty MBS by Washington Mutual, which JPMorgan Chase acquired in 2008.
Before that settlement, NCUA had recovered $335 million from parties that sold bad MBS to the corporates – it won a $20.5 million settlement from Citigroup in 2011.
NCUA has filed 10 lawsuits against several other firms, including Barclays Capital, Credit Suisse, Goldman Sachs, JPMorgan Securities, RBS Securities, UBS Securities, Wachovia, and Bear, Stearns, alleging violations of federal and state securities laws in the sale of MBS to five now-defunct corporate credit unions.
The deal was reached over the weekend and requires the firm to pay $2.5 billion in relief to consumers. Bloomberg reported that of the $7 billion, the firm will pay $4 billion to the Justice Department, about $300 million to state attorneys general and about $200 million to FDIC.
The Justice Department's investigation into the sale of faulty MBS also extended to Bank of America Corp. and JPMorgan Chase. JPMorgan Chase agreed to pay $13 billion in November to settle similar federal and states allegations.
In November, NCUA recovered $1.4 billion in the JPMorgan settlement for a wide range of activities undertaken during the housing downturn, including the sale to corporate credit unions of faulty MBS by Washington Mutual, which JPMorgan Chase acquired in 2008.
Before that settlement, NCUA had recovered $335 million from parties that sold bad MBS to the corporates – it won a $20.5 million settlement from Citigroup in 2011.
NCUA has filed 10 lawsuits against several other firms, including Barclays Capital, Credit Suisse, Goldman Sachs, JPMorgan Securities, RBS Securities, UBS Securities, Wachovia, and Bear, Stearns, alleging violations of federal and state securities laws in the sale of MBS to five now-defunct corporate credit unions.
Share This
Related Resources
Add to Calendar 2024-06-26 14:00:00 2024-06-26 14:00:00 Gallagher Executive Compensation and Benefits Survey About the Webinar The webinar will share trends in executive pay increases, annual bonuses, and nonqualified benefit plans. Learn how to use the data charts as well as make this data actionable in order to improve your retention strategy. You’ll hear directly from the survey project manager on how to maximize the data points to gain a competitive edge in the market. Key findings on: Total compensation by asset size Nonqualified benefit plans Bonus targets and metrics Prerequisites Demographics Board expenses Watch On-Demand Web NAFCU digital@nafcu.org America/New_York public
Gallagher Executive Compensation and Benefits Survey
preferred partner
Gallagher
Webinar
Add to Calendar 2024-06-21 09:00:00 2024-06-21 09:00:00 The Evolving Role of the CISO in Credit Unions Listen On: Key Takeaways: [01:30] Being able to properly implement risk management decisions, especially in the cyber age we live in, is incredibly important so CISOs have a lot of challenges here. [02:27] Having a leader who can really communicate cyber risks and understand how ready that institution is to deal with cyber events is incredibly important. [05:36] We need to be talking about risk openly. We need to be documenting and really understanding what remediating risk looks like and how you do that strategically. [16:38] Governance, risk, compliance, and adherence to regulatory controls are all being looked at much more closely. You are also seeing other technology that is coming into the fold directly responsible for helping CISOs navigate those waters. [18:28] The reaction from the governing bodies is directly related to the needs of the position. They’re trying to help make sure that we are positioned in a way that gets us the most possibility of success, maturing our postures and protecting the institutions. Web NAFCU digital@nafcu.org America/New_York public
The Evolving Role of the CISO in Credit Unions
preferred partner
DefenseStorm
Podcast
AI in Action: Redefining Disaster Preparedness and Financial Security
Strategy
preferred partner
Allied Solutions
Blog Post
Get daily updates.
Subscribe to NAFCU today.