The FHFA sued 18 banks in 2011 seeking to recoup some of the losses taxpayers covered when the government took control of the failing mortgage-finance companies in 2008. The agency accused the banks of violating securities laws and, in some cases, committing fraud when they sold private-label mortgage bonds backed by improperly originated loans.
The largest settlements last year were with New York-based JPMorgan, which agreed to pay $4 billion, and Frankfurt-based Deutsche Bank, which reached a $1.9 billion settlement. Other banks settling included Citigroup Inc., UBS AG and Ally Financial Inc.. Wells Fargo & Co., which wasn’t among those sued, agreed to pay $335 million.
FHFA claims against 12 companies, including Goldman Sachs Group Inc. and Bank of America Corp., are still in litigation.
Fannie Mae and Freddie Mac have taken $187.5 billion in U.S. aid and have returned $185.2 billion under terms of their federal conservatorship. The companies are required to turn over to the Treasury all quarterly profits above a $3 billion net worth cap, and money is counted as a return on the nearly 80% stakes the goverment holds, not as repayment of aid.