Another settlement with the Commonwealth of Massachusetts over alleged practices used during the issuance of residential mortgage-backed securities pushes the total past $300 million.
A review of industry-wide residential mortgage securitization practices in Massachusetts was conducted by state’s office of attorney general.
So far, the investigation has yielded $284 million from the likes of Barclays Bank PLC, Goldman Sachs & Co., JPMorgan Chase & Co., Morgan Stanley and RBS Financial Products Inc.
A settlement announced this week pushes the total past $300 million.
On Monday, the office of Massachusetts Attorney General Martha Coakley disclosed a settlement with Countrywide Securities Corp.
The Bank of America Corp.-subsidiary will pay a total of $17.3 million to settle alleged actions in RMBS issuance.
The settlement amount includes $6 million paid directly to the state and $11.3 million paid to compensate government investors with the Pension Reserves Investment Management Board.
“It is important to hold Wall Street accountable for its role in the subprime lending crisis,” Coakley said in a written statement. “Our office will continue its leading role in this area as we work to help homeowners and others harmed by investment banks.”
