Goldman, Morgan Stanley pay $557M in mortgage case - MyFoxAustin.com | KTBC Fox 7 | News, Weather, Sports

Goldman, Morgan Stanley pay $557M in mortgage case

Posted: Updated:

WASHINGTON (AP) -- Goldman Sachs and Morgan Stanley will pay a combined $557 million to settle federal complaints that they wrongfully foreclosed on homeowners who should have been allowed to stay in their homes.

The agreements announced Wednesday with the Federal Reserve were similar to deals struck earlier this month with 10 other major banks and mortgage lenders. Combined, the 12 firms will pay more than $9 billion.

The settlements could compensate hundreds of thousands of Americans whose homes were seized because of abuses such as "robo-signing," when banks automatically signed off on foreclosures without properly reviewing documents. The agreement will also help eliminate huge potential liabilities for the banks.

Consumer advocates say regulators settled for too low a price by letting banks avoid full responsibility for foreclosures that victimized families.

  • Your MoneyMore>>

  • Glamsquad app

    Hair and makeup house call

    Hair and makeup house call

    Tuesday, August 26 2014 10:27 PM EDT2014-08-27 02:27:35 GMT
    A new app is bringing the star treatment to the masses. Glamsquad delivers a hair and makeup artist to your doorstep.I invited them over to my place. Kelly did my makeup and Erin styled my mane. They helped me select a look from examples on the app and they encouraged me to tweak the looks to fit my style.
    A new app is bringing the star treatment to the masses. Glamsquad delivers a hair and makeup artist to your doorstep.I invited them over to my place. Kelly did my makeup and Erin styled my mane. They helped me select a look from examples on the app and they encouraged me to tweak the looks to fit my style.
  • Passing on your online accounts after you die

    Passing on your online accounts after you die

    Tuesday, August 26 2014 10:07 PM EDT2014-08-27 02:07:19 GMT
    Your Facebook page or email could soon be passed on in a will just like physical property. Delaware is the first state to allow heirs access to their loved ones' digital legacies. Pedram Tabibi, a social media attorney, says in many cases this can be vital information, like banking and health data. He says current terms and conditions for websites such as Apple, Amazon, and Google won't let an account get passed onto someone else.
    Your Facebook page or email could soon be passed on in a will just like physical property. Delaware is the first state to allow heirs access to their loved ones' digital legacies. Pedram Tabibi, a social media attorney, says in many cases this can be vital information, like banking and health data. He says current terms and conditions for websites such as Apple, Amazon, and Google won't let an account get passed onto someone else.
  • Potential buyer looks at Showboat Casino

    Potential buyer looks at Showboat Casino

    Tuesday, August 26 2014 3:05 PM EDT2014-08-26 19:05:43 GMT
    Caesars Entertainment is showing the soon-to-close Showboat Casino Hotel to "an interested party," but won't say who it is.Company spokesman Gary Thompson told The Associated Press that Caesars officials were showing the Showboat on Tuesday to a party that had expressed interest.
    Caesars Entertainment is showing the soon-to-close Showboat Casino Hotel to "an interested party," but won't say who it is.Company spokesman Gary Thompson told The Associated Press that Caesars officials were showing the Showboat on Tuesday to a party that had expressed interest.
Powered by WorldNow

KTBC FOX 7
119 East 10th Street
Austin, TX 78701

Phone: (512) 476-7777
Fax: (512) 495-7001

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | New Terms of Service What's new | Ad Choices