Home / Tag Archives: Goldman Sachs (page 5)

Tag Archives: Goldman Sachs

Goldman Sachs Asks Court to Dismiss Class Action Securities Suit

Goldman Sachs is asking the U.S. Supreme Court to dismiss a mortgage securities class action lawsuit that the company says could cost Wall Street tens of billions of dollars, according to a report from Reuters. The bank is facing a suit from the NECA-IBEW Health & Welfare Fund, which owned mortgage-backed certificates underwritten by Goldman. The fund is suing on behalf of investors who say they were misled about the securities' risk, Reuters reports. The 2nd U.S. Circuit Court of Appeals in New York decided in September to allow the lawsuit to go ahead on the basis that the NECA-IBEW is acting for investors whose claims ""implicate the same set of concerns"" as its own.

Read More »

NCUA Faults Goldman Sachs with Credit Union Failures

The National Credit Union Administration (NCUA) is suing Goldman Sachs in hopes of recovering losses it incurred as the result of two failed credit unions - U.S. Central and Western Corporate federal credit unions. The complaint filed in a California district court alleges Goldman Sachs misrepresented the risks associated with residential mortgage-backed securities bought by the two credit unions, ultimately leading to their demise. It's the fourth securities-related suit NCUA has filed, and the agency says there's more to come.

Read More »

Goldman Sachs Sells Litton Servicing Arm to Ocwen

Goldman Sachs has agreed to sell its residential mortgage servicing subsidiary to Ocwen Financial Corp. Ocwen will pay $263.7 million in cash to acquire Litton Loan Servicing. In addition to the cash purchase price, Ocwen will lay out another $337 million to take care of some of Litton's outstanding debt. The deal will result in Ocwen's acquisition of a servicing portfolio of approximately $41.2 billion in unpaid principal balance of primarily non-prime residential mortgage loans.

Read More »

Goldman Sachs Subpoenaed Over Subprime Mortgage Trading

Prosecutors with the Manhattan District Attorney's office have issued a subpoena to Goldman Sachs for information related to the company's trading of mortgage bonds backed by subprime loans. The action against the Wall Street institution stems from a congressional report issued in April by a Senate subcommittee on the key causes of the financial crisis. The U.S. Justice Department, SEC, and New York's attorney general have reportedly launched their own investigations into Goldman's dealings during the run-up to the mortgage meltdown.

Read More »

New York AG Looks to Link Financial Crisis and Mortgage Securities

Industry analysts, economists, even lawmakers generally concede that the pooling of risky subprime mortgages into secondary market securities fueled the economic collapse that almost brought the nation's financial system to its knees. But New York Attorney General Eric Schneiderman is looking for proof that major financial institutions were hocking these dicey mortgage-backed securities during the days leading up to the collapse of the housing market, knowing that these transactions would result in billions of dollars in mortgage losses.

Read More »

National Credit Union Association Threatens Lawsuit Against 4 Firms

Another lawsuit centered around mortgage securities backed by faulty loans may be brewing. The National Credit Union Administration (NCUA) has threatened to sue four banks and investment firms unless they refund more than $50 billion for mortgage-related bonds that went bad. Goldman Sachs, Bank of America's Merrill Lynch unit, Citigroup, and J.P. Morgan Chase are named as the targets of NCUA's legal threats. The regulator says mortgage securities sold by these companies led to the collapse of five wholesale credit unions.

Read More »

Goldman’s Litton Loan Servicing Up for Sale

Word on the street is that Goldman Sachs is looking to sell off its mortgage servicing arm, Texas-headquartered Litton Loan Servicing. One publication's blog post says Litton never proved to be the distressed mortgage cash-cow that Goldman had hoped, while another financial news outlet reports that the servicing unit is indeed unprofitable at the moment. Industry data show that Litton's servicing portfolio has contracted by nearly 35 percent over the last two years.

Read More »

Bank of America and Wells Fargo Most Sued Banks in 2010

A recent report by Institutional Risk Analytics (IRA) says Bank of America and Wells Fargo are two of the most sued financial service firms in the United States. IRA says that mortgage exposure is what is causing these two banks and others in similar situations to be embroiled in so many federal legal cases. In addition, the firm points to the added burden many of these companies are also facing in litigation that will not reach federal court, such as cases involving foreclosure practices.

Read More »

SEC Subpoenas Big Banks’ Mortgage Securitization Documents

The Securities and Exchange Commission (SEC) is reportedly investigating lenders' procedures for packaging home mortgages into securities bonds for sale to investors. Reuters, citing two sources familiar with the probe, says the SEC sent subpoenas last week to Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs, and Wells Fargo. The subpoenas focus on the earliest stage of the mortgage securitization process, in particular, the role of master servicers.

Read More »

Starwood Property Trust Raises $653M to Buy Commercial Mortgages

Commercial real estate financier Starwood Property Trust, Inc. sourced $653 million last week that the company says will be used to acquire commercial mortgage debt and other target assets. The Greenwich, Connecticut-based REIT closed a $150 million warehouse financing facility with Goldman Sachs Mortgage Company, a $125.2 million asset-based credit agreement with Bank of America, and sold 20 million shares of its common stock to raise an additional $378 million.

Read More »

Your Daily Dose of DS News

Get the news you need, when you need it. Subscribe to the Daily Dose of DS News to receive each day’s most important default servicing news and market information, absolutely free of charge.