Fed Fines Five Large Banks -- WSJ
January 13 2018 - 3:02AM
Dow Jones News
By Ryan Tracy
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (January 13, 2018).
WASHINGTON -- The Federal Reserve fined five big banks a total
of $35.1 million for issues related to financial-crisis-era
mortgage servicing and foreclosures, while also moving them out of
the penalty box for what it said was a "substantial improvement" in
their practices.
The fines relate to deficiencies that regulators saw in the wake
of a meltdown in the U.S. housing market around the 2008-09
financial crisis.
Goldman Sachs Group Inc. was fined $14 million; Morgan Stanley,
$8 million; CIT Group Inc., $5.2 million; U.S. Bancorp, $4.4
million, and PNC Financial Services Group Inc., $3.5 million.
The five firms had been slapped with enforcement actions in 2011
and 2012 for what the Fed said were "deficiencies in residential
mortgage loan servicing and foreclosure processing."
The Fed said the firms have made "substantial improvement" in
their practices.
The central bank didn't provide an explanation for the timing of
the penalties. Banks can be subject to enforcement orders for years
before they remediate regulators' concerns.
Separately, the Fed penalized Goldman Sachs $90,000 for
violations related to the National Flood Insurance Act.
Representatives of U.S. Bancorp, CIT and PNC said they were
pleased the matter has been resolved. Morgan Stanley declined to
comment. Goldman Sachs didn't reply to a request for comment.
Write to Ryan Tracy at ryan.tracy@wsj.com
(END) Dow Jones Newswires
January 13, 2018 02:47 ET (07:47 GMT)
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