Goldman Sachs, Morgan Stanley To Pay $557 Million To End Foreclosure Review

Major Banks To Fork Over Huge Sum To Troubled Borrowers
FILE - In this March 15, 2012 photo, a trader works in the Goldman Sachs booth on the floor of the New York Stock Exchange. Goldman Sachs announced Wednesday, Jan. 16, 2013 that its earnings almost tripled in the fourth quarter as investment banking revenues surged. (AP Photo/Richard Drew)
FILE - In this March 15, 2012 photo, a trader works in the Goldman Sachs booth on the floor of the New York Stock Exchange. Goldman Sachs announced Wednesday, Jan. 16, 2013 that its earnings almost tripled in the fourth quarter as investment banking revenues surged. (AP Photo/Richard Drew)

WASHINGTON, Jan 16 (Reuters) - Goldman Sachs Group Inc and Morgan Stanley will pay $557 million in cash and other assistance to troubled borrowers to end a case by case review of foreclosures required by U.S. regulators.

The U.S. Federal Reserve said on Wednesday the two banks will pay $232 million to eligible borrowers and $325 million in loan modifications and forgiveness.

The agreement is similar to the $8.5 billion deal reached between the Fed, the Office of the Comptroller of the Currency, and 10 other bank servicers on Jan. 7.

The Fed had previously ordered Goldman and Morgan Stanley to review foreclosures conducted by mortgage servicing business the two investment banks purchased in the run-up to the subprime mortgage crisis and have since sold.

Before You Go

10. Bank Of New York Mellon

The 10 Biggest Banks In The U.S.

Popular in the Community

Close

What's Hot