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Fact Sheet

FHFA's Update on Private Label Securities Actions

2013 and 2014 Settlements and Remaining Cases


​​​​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 and 2014.  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


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


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

*Case litigated in spring 2015, FHFA prevailed, now on appeal to United States Court of Appeals for the Second Circuit.

​​District of Connecticut Case:
The Royal Bank of Scotland Group, PLC  ​



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

© 2017 Federal Housing Finance Agency