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Fact Sheet

FHFA's Update on Private Label Securities Actions

2013 - 2017 Settlements and Cases

FOR IMMEDIATE RELEASE
7/12/2017

In 2011, the Federal Housing Finance Agency initiated litigation against 18 financial institutions involving allegations of securities law violations and, in some instances, fraud in the sale of private-label securities (PLS) to Fannie Mae and Freddie Mac.  Below is a list of the cases, with amounts of any settlements reached in 2013 through July 2017.  Settlement amounts result from various factors, including statutory requirements, number of securities, unique circumstances of each matter and litigation risks.

PLS Litigation Settlements
1. General Electric Company $6.25 million
2. CitiGroup Inc. $250 million
3. UBS Americas, Inc. (Union Bank of Switzerland) $885 million
4. J.P. Morgan Chase & Co. $4 billion
5. Deutsche Bank AG $1.925 billion
6. Ally Financial, Inc. $475 million
7. Morgan Stanley $1.25 billion
8. SG Americas (Societe Generale) $122 million
9. Credit Suisse Holdings (USA) Inc. $885 million
10. Bank of America Corp.
11. Merrill Lynch & Co.
12. Countrywide Financial Corporation

$5.83 billion
13. Barclays Bank PLC $280 million
14. First Horizon National Corp.$110 million
15. RBS Securities, Inc. (in Ally action)$99.5 million
16. Goldman Sachs & Co.$1.2 billion
17. HSBC North America Holdings, Inc. (Hong Kong Shanghai Banking Corp.)$550 million
18. Royal Bank of Scotland Group, plc$5.5 billion

 

Non-Litigation PLS Settlements
Wells Fargo Bank, N.A.$335.23 million

 

Remaining PLS Case
Southern District of New York Cases:
*Nomura Holding America, Inc. 

*Case litigated in spring 2015, verdict in FHFA's favor; and now on appeal to United States Court of Appeals for the Second Circuit (argued Nov. 2016).

Attachments:

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Contacts:

​Corinne Russell (202) 649-3032 / Stefanie Johnson (202) 649-3030

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