Fed Staffers Approved $9B Mortgage Deal Without Board Vote

Law360, New York (June 13, 2013, 4:13 PM EDT) -- A top Federal Reserve official told Congress in a letter Tuesday that the central bank's staff had signed off on a controversial now-$9.3 billion mortgage servicing settlement earlier this year without a formal vote from its board of governors.

Fed Governor Daniel Tarullo said that top Federal Reserve staffers had been in regular contact with the board while negotiating the January settlement, which has drawn the ire of Congress and been plagued by bounced checks to homeowners, but approved the deal on their own authority....
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