A US regulator on Thursday said it reached an USD 885 million settlement with UBS over allegations the bank misrepresented mortgage-backed bonds that were sold to Fannie Mae and Freddie Macduring the housing bubble.
Under pressure, Newt Gingrich arranged the release of a contract Monday night showing the Federal Home Loan Mortgage Corp. paid his consulting firm a $25,000 monthly retainer fee in 2006, for a total of $300,000.
Six former top executives at Fannie Mae and Freddie Mac were sued by US regulators on charges of misleading investors about the mortgage finance companies' exposure to risky home loans in the run-up to the 2008 financial crisis.
A US regulator sued 17 large banks and financial institutions on Friday over losses on about USD 200 billion of subprime bonds, which may hamper a broader government settlement of the mortgage mess left over from the housing crisis.
A US regulator will soon file lawsuits against major banks accusing them of bundling subprime home loans into bonds that never should have been sold to investors and causing mortgage giants Fannie Mae and Freddie Mac to lose billions, according to a source familiar with the matter.