GE Settles FHFA's Suit Over $549M In MBS Sales

Law360, Los Angeles (January 23, 2013, 7:57 PM EST) -- General Electric Co. agreed Wednesday to settle the Federal Housing Finance Agency's suit accusing it of tricking Freddie Mac into buying $549 million of risky mortgage-backed securities.

The settlement, whose terms were kept secret, is the first to be reached in a slew of suits the agency launched against GE and 17 Wall Street banks in 2011, alleging they lied to Fannie Mae and Freddie Mac about the quality of nearly $200 billion in residential mortgage-backed securities the lending giants bought during the housing bubble....
To view the full article, register now.