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Goldman, Morgan Stanley Fined as Fed Ends Foreclosure Cases

  • Five banks sanctioned and will pay a combined $35.5 million
  • One of the banks once run by Treasury’s Mnuchin, OCC’s Otting
Photographer: Chris Rank/Bloomberg
Updated on

The Federal Reserve is closing the book on sanctions against U.S. banks over improper handling of post-crisis mortgage foreclosures, fining firms including Goldman Sachs Group Inc. and the IndyMac successor formerly chaired by Treasury Secretary Steven Mnuchin.

In an enforcement case that has stretched across seven years, the Fed is ending its role by fining five companies, the agency said in a statement Friday. More than $35 million in new penalties include $14 million for Goldman Sachs, $8 million for Morgan Stanley, $4.4 million for U.S. Bancorp, $3.5 million for PNC Financial Services Group Inc. and $5.2 million for CIT Group Inc., which had purchased OneWest Bank -- the firm that bought IndyMac.