Goldman, Morgan Stanley Reach $557M Foreclosure Deal

Law360, New York (January 16, 2013, 1:34 PM EST) -- Goldman Sachs Group Inc. and Morgan Stanley agreed Wednesday to pay a combined $557 million in cash and other assistance to homeowners who were victims of faulty foreclosure practices at the banks' former mortgage servicing units.

The settlement with the Federal Reserve mirrors a $8.5 billion deal the central bank and the Office of the Comptroller of the Currency announced with Bank of America Corp., Citigroup Inc. and eight other banks over botched foreclosure proceedings. The Jan. 7 deal replaced an existing, and heavily criticized, April...
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