The Federal Housing Finance Agency [1] (FHFA) announced Thursday it has reached a settlement with Société Générale, related companies, and specifically named individuals. The parties have reached a settlement of $122 million, and resolved claims made in the lawsuit FHFA vs. Société Générale, et al.
Société Générale is a French multinational banking and financial services company.
The suit alleged violations of federal and state securities laws in connection with private-label mortgage-backed securities (PLS) purchased by Fannie Mae and Freddie Mac during 2006.
The FHFA currently serves as a conservator of Fannie Mae and Freddie Mac.
Société Générale will pay roughly half of the settlement to Fannie Mae and half to Freddie Mac. Certain claims against the company related to securities will be made public as part of the settlement.
The FHFA has announced eight settlements in relation to PLS lawsuits.