Societe Generale To Pay $122M To Settle Toxic MBS Suit

Law360, New York (February 27, 2014, 7:39 PM EST) -- Subsidiaries of French banking giant Societe Generale will pay $122 million to settle claims that they sold toxic mortgage-backed securities to Fannie Mae and Freddie Mac, the Federal Housing Finance Agency said Thursday.

While vigorously denying any wrongdoing, SG Americas Inc. and four other Societe Generale subsidiaries agreed to pay $122 million to settle claims that they misrepresented the quality of loans underlying four MBS offerings sold to the government lenders.

Societe Generale representatives emphasized in a statement that the agreement would not impact the bank’s...
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