The Federal Housing Finance Agency (FHFA) has released its first Conservator’s Report on the Enterprises’ Financial Condition. The Conservator’s Report provides an overview of key aspects of the financial condition of Fannie Mae and Freddie Mac (the government-sponsored enterprises) during conservatorship. The report will be released on a quarterly basis following the filing of the Enterprises’ financial results with the Securities and Exchange Commission (SEC).Read more

The Securities and Exchange Commission (SEC) charged Goldman Sachs & Company and one of its vice presidents for defrauding investors by misstating and omitting key facts about a financial product tied to sub-prime mortgages as the U.S. housing market was beginning to falter. The SEC alleges that Goldman Sachs structured and marketed a synthetic collateralized debt obligation (CDO) that hinged on the performance of sub-prime residential mortgage-backed securities (RMBS).Read more

The Securities and Exchange Commission (SEC) has charged Boston-based State Street Bank and Trust Company with misleading its investors about their exposure to sub-prime investments while selectively disclosing more complete information to specific investors. State Street has agreed to settle the SEC's charges by paying more than $300 million that will be distributed to investors who lost money during the sub-prime market meltdown in 2007.Read more

Flagstar Bancorp Inc., the holding company of Flagstar Bank, has announced that the company has raised $300 million of capital  through a previously announced rights offering, which closes on Feb. 8, 2010. In addition, Flagstar has announced that Todd McGowan has joined as chief risk officer and that James A. Ovenden has been elected to the board of directors and appointed to its audit committee. The company also announced that it has entered into agreements with the Office of Thrift Supervision (OTS) to address certain banking issues identified by the OTS.Read more

Patricia Morgen has pleaded guilty in federal court in San Francisco to wire fraud, mail fraud and money laundering, United States Attorney Joseph P.Read more

The Securities and Exchange Commission (SEC) has charged three former top officers of New Century Financial Corporation with securities fraud for misleading investors as New Century's sub-prime mortgage business was collapsing in 2006.Read more

Attorney General Eric Holder, Treasury Secretary Tim Geithner, Housing and Urban Development (HUD) Secretary Shaun Donovan, and Securities and Exchange Commission (SEC) Chairwoman Mary Schapiro have announced that President Barack Obama has established by Executive Order an interagency Financial Fraud Enforcement Task Force to strengthen efforts to combat financial crime. The Department of Justice will lead the task force and the Department of Treasury, HUD and the SEC will serve on the steering committee.Read more

Eight federal regulatory agencies have released a final model privacy notice form that will make it easier for consumers to understand how financial institutions collect and share information about consumers. Under the Gramm-Leach-Bliley Act (GLB Act), institutions must notify consumers of their information-sharing practices and inform consumers of their right to opt out of certain sharing practices.Read more

The First American Corporation, America’s largest provider of business information, has announced the expiration of the initial offering period for its offer to exchange all publicly held shares of the common stock of its subsidiary, First Advantage Corporation, and that all of the conditions to the exchange offer have been satisfied. First American also announced the commencement of a subsequent offering period for the exchange offer that will expire at 5:00 p.m. EST on Nov. 17, 2009, unless extended.Read more

The House Financial Services Committee has passed HR 3890, the Accountability and Transparency in Rating Agencies Act, introduced by Rep. Paul E. Kanjorski (D-PA), Chairman of the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises. The Committee passed HR 3890, with bipartisan support, by a vote of 49-14. “The Accountability and Transparency in Rating Agencies Act aims to curb the inappropriate and irresponsible actions of credit rating agencies which greatly contributed to our current economic problems,” said Rep.Read more