Here's another group of bank officials who won't be going to jail for contributing to the meltdown.
Citigroup executives involved in the issuance of residential mortgage-backed securities at the center of the 2008 financial crisis will not be facing criminal charges for selling toxic bonds, U.S. authorities have determined.
"Citigroup knowingly and purposefully purchased and securitized loans that did not meet representation and warranties or in many cases were outright fraudulent loans," but there is "not enough compelling evidence" to pursue charges against executives and other employees, the inspector general's office of the Federal Housing Finance Agency said in the final
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Banks that sold faulty mortgage-backed securities right before the crisis have suffered a string of legal defeats over the timing of government lawsuits, but some experts believe the industry may still have a shot in the Supreme Court.
August 14 -
Four years after agreeing to an initial settlement, Bank of America has won court approval for its $8.5 billion settlement with investors over Countrywide's mortgage practices. Here's an update on all the other big mortgage litigation outstanding.
March 5 -
If you thought the subprime mortgage-backed security was an artifact of the past, think again. Nomura Holdings and Angel Oak Capital have a deal that may help revive the part of the market that went bust during the crisis. Their success could encourage more banks to dip their toes back into riskier mortgages.
March 24 -
BlackRock managed the year's largest sale of legacy mortgage assets Tuesday. Credit Suisse submitted a winning bid and quickly resold as much as 40% of the U.S. mortgage paper it bought.
October 28
The report is dated Nov. 2 but recently became public as a result of an open-records request by Reuters. This is the first case of authorities publicly acknowledging that executives of a major bank involved in the financial crisis would dodge criminal charges for their involvement, according to a
The report did not reveal the names of executives who were investigated, nor did it elaborate on why they could not be prosecuted.
A $7 billion settlement in July 2014 resolved state and federal civil claims against the company related to the packaging and selling of mortgage bonds before 2009. However, the Justice Department had requested a review to determine if anyone connected with the companies involved in any of the RMBS settlements could be held personally responsible.
About 50 subpoenas were issued to Citigroup, trustees, servicers, due diligence providers and their employees as part of the civil probe, and government investigators reviewed nearly 25 million documents, the report said. Interviews were conducted with current and prior Citi employees and executives, according to the report.
