Goldman Sachs RMBS Lawsuit Moves Forward.
On March 28, Bloomberg reported that a U.S. District Judge in Manhattan declined to dismiss a securities lawsuit over residential mortgage-backed securities Goldman Sachs sold in 2007, noting that an appellate decision overturning her findings in a related case had altered the legal landscape. RMBS Suit.
Bank of America Agrees to Settle Mortgage Bond Claims.
On March 26, Reuters reported that Bank of America agreed to pay $9.3 billion to settle claims that it sold Fannie Mae and Freddie Mac faulty mortgage bonds. The settlement includes $6.3 billion in cash and the rest in securities that Bank of America will purchase from the two housing finance entities. Bank of America and its former chief executive, Kenneth Lewis, also settled a lawsuit by New York's attorney general that alleged it misled investors about mounting losses at Merrill Lynch & Co, which the bank agreed to acquire at the height of the financial crisis. Settlement.
Lehman Prepares for Large Distribution.
On March 27, Reuters reported that Lehman Brothers Holdings Inc. plans next week to distribute about $17.9 billion to creditors, boosting its total payout to roughly $80.4 billion since it left its record bankruptcy. The distribution is Lehman's fifth, and will be the largest since an initial $22.5 billion payout that followed the company's emergence from Chapter 11 on March 6, 2012. Lehman.