U.S. banks offered deal over lawsuits -FT

Categorized | STOP FORECLOSURE FRAUD

U.S. banks offered deal over lawsuits – FT

Posted on05 September 2011. Tags: 17 Firms, 50 state settlement, Ally Financial, attorney general, bank of america, bankruptcy, Barclays, Bruce h. Levitt, Case No. 08-18700-JHW, CHIEF JUDGE U.S. BANKRUPTCY COURT, CitiGroup, congressman, CONTROL FRAUD, countrywide, countrywide home loans servicing, Credit Suisse, deutsche bank, dinsfla, Eric Schneiderman, fannie mae, Fed, federal housing finance agency, fhfa, first franklin, First Horizon, foreclosure fraud, Freddie Mac, Frenkel, general electric, goldman sachs, Harold Kaplan, HSBC, Jerrold Nadler, John T. Kemp, jpmorgan chase, Judge JUDITH H. WIZMUR, Kemp v. Countrywide Home Loans, Lambert, lawsuits, Levitt & Slafkes, linda DeMartini, LLP, Martin Act, mbs, Merrill Lynch, Morgan Stanley, mortgage backed securities, new jersey, Nomura Holding America, non mortgage-backed, note, notes, REMICs, robo signers, securities fraud, securitization, settlement, sharon mason, Societe Generale, The Royal Bank of Scotland PLC, tim geithner, tom miller, william black

REUTERS-

Big U.S. banks in talks with state prosecutors to settle claims of improper mortgage practices have been offered a deal that is proposed to limit part of their legal liability, the Financial Times reported on Tuesday.

The FT said state prosecutors have proposed a deal to limit part of the banks’ liability in return for a multibillion-dollar payment.

The talks aim to settle allegations that banks including Bank of America (BAC.N), JPMorgan Chase (JPM.N), Wells Fargo (WFC.N), Citigroup (C.N) and Ally Financial (GKM.N). seized the homes of delinquent borrowers and broke state laws by employing so-called “robosigners”, workers who signed off on foreclosure documents en masse without reviewing the paperwork.

[REUTERS]