For Immediate Release
Contact:
Corinne Russell
(202) 649-3032

Stefanie Johnson
(202) 649-3030

January 2, 2014

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FHFA Recovers Nearly $8 Billion for Taxpayers in 2013
Through Settlements

Washington, DC – The Federal Housing Finance Agency (FHFA), as conservator of Fannie Mae and Freddie Mac, today announced it has recovered nearly $8 billion on behalf of taxpayers in 2013 through settlements with financial institutions that sold private-label securities (PLS) to Fannie Mae and Freddie Mac between 2005 and 2007. FHFA sued 18 financial institutions in 2011 alleging securities law violations, and in some cases, fraud.

Attached to this news release is a list of the settlements.

Links to 2011 news releases on PLS litigation:

FHFA Sues 17 Firms to Recover Losses to Fannie Mae and Freddie Mac
http://www.fhfa.gov/webfiles/22599/PLSLitigation_final_090211.pdf

FHFA Sues UBS to Recover Losses to Fannie Mae and Freddie Mac
http://www.fhfa.gov/webfiles/21842/UBS072711FINAL.pdf

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The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks. These government-sponsored enterprises provide more than $5.5 trillion in funding for the U.S. mortgage markets and financial institution.

Federal Housing Finance Agency
Update on Private-Label Securities Actions
2013 Settlements and Remaining Cases

In 2011, the Federal Housing Finance Agency initiated litigation against 18 financial institutions involving allegations of securities law violations and, in some instances, fraud in the sale of privatelabel securities (PLS) to Fannie Mae and Freddie Mac. Below is a synopsis of the status of each case, with amounts of any settlements reached in 2013, including a non-litigation settlement.

Settlement amounts result from calculating various factors, including statutory calculations, number of securities, unique circumstances of each matter and litigation risks.

PLS Litigation Settlements

1. General Electric Company $6.25 million
2. CitiGroup Inc. $250 million
3. UBS Americas, Inc. (Union Bank of Switzerland) $885 million
4. J.P. Morgan Chase & Co. $4 billion
5. Deutsche Bank AG $1.925 billion
6. Ally Financial, Inc. $475 million

Non-Litigation PLS Settlement

Wells Fargo Bank, N.A. $335.23 million

Remaining PLS Cases
Southern District of New York Cases:

7. Barclays Bank PLC
8. Bank of America Corp.
9. Credit Suisse Holdings (USA) Inc.
10. First Horizon National Corp.
11. Goldman Sachs & Co.
12. HSBC North America Holdings, Inc. (Hong Kong Shanghai Banking Corp.)
13. Merrill Lynch & Co.
14. Morgan Stanley
15. Nomura Holding America, Inc.
16. SG Americas (Societe Generale)
[Ally Financial, Inc. (certain non-Ally defendants remain in the case)]

District of Connecticut Case:

17. The Royal Bank of Scotland Group, PLC

Central District of California Case:

18. Countrywide Financial Corporation

Source: FHFA Recovers Nearly $8 Billion for Taxpayers in 2013 Through Settlements

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