Home / Markets / Industries / Finance
Friday, October 09, 2009
Banks Settle Subprime Suit
By Darryl R. Isherwood
FOXBusiness
Three major Wall Street banks have settled a lawsuit over their role in the collapse of a Philadelphia-based subprime mortgage lender.
JPMorgan Chase, (JPM) Credit Suisse Group (CS) and Morgan Stanley (MS) have agreed to pay $100 million to settle the suit that charged they improperly propped up American Business Financial Services long after its business was dead. Some 22,000 investors were left short when the lender collapsed in 2005.
Under the terms of the settlement, which is subject to court approval, JPMorgan will pay $55 million for claims against itself and Bear Stearns, which it absorbed in 2008. Credit Suisse will pay $37.5 million and Morgan Stanley will pay $7.5 million, Reuters reported.
Fox Business Video
-
-
Shaping Up Wall Street
-
Feb 9, 2010
Eric Dinallo on running for NY AG
-
-
-
Tips for John Thain
-
Feb 9, 2010
Some tips for the new CIT CEO
-
-
-
Madison Square Garden Goes Public
-
Feb 9, 2010
MSG splits from Cablevision
-
-
-
Google Joins the Social Networ...
-
Feb 9, 2010
Google adds status feature to Gmail
-
-
-
How Much Energy is Your Neighb...
-
Feb 9, 2010
Compare your energy consumption with your neighbors
-
Last 5 Stocks
- Ticker
- Company
- Price
- Change