According to data compiled by SNL Financial, big settlements with regulators have faded further into memory, but the latest tally for credit crisis and mortgage related settlements now stands at $132.15 billion.
Bloomberg reported that S&P is close to a settlement of about $1 billion with the U.S. for allegedly misleading investors about its ratings of mortgage-backed securities.
Deutsche Bank, in its capacity as trustee of the Morgan Stanley ABS Capital Trust, filed a complaint against WMC Mortgage LLC as successor-by-merger to WMC Mortgage Corp. and GE Capital for breach of contract over an MBS transaction encompassing loans totaling $666 million to 3,399 borrowers closed in 2007.
The FOMC said that since January the economy has returned to moderate economic growth following a pause late last year. The Fed added that it will continue buying securities at a pace of $85 billion a month.
In a speech announcing the U.S. government’s lawsuit against S&P, Acting Associate Attorney General Tony West provides background and insights into the investigation that was tagged with the codename “Alchemy” by the Justice Department.