securities

$153.6 million fine would be paid by JPMorgan Chase & Co to settle the litigation with the US Securities and Exchange Commission. The SEC accused the banking giant of defrauding investors who bought mortgage securities sold just before the nation's housing market collapsed.

The regulator supported its arguments in the complaint with the excerpts from internal communications of JPMorgan that showed bankers sold a collateralized mortgage obligation in 2007 to ensure that it could get credit-scarred mortgage securities off its books.

The New York Federal Reserve has joined the Pacific investment Management Company, better known as Pimco, and investment management firm BlackRock in a move to make Bank of America purchase back $47 billion in mortgage bonds. The news was reported by Bloomberg Tuesday. Later Kathy Patrick, lead attorney for the consortium, confirmed that the group owns more than 25% of the voting rights in more than $47 billion worth of Bank of America securities.

The Federal Reserve has issued a new report addressing regulators. The report was required by the Dodd-Frank Wall Street Reform and Consumer Protection Act focuses on the potential impact of credit risk retention requirements on securitization markets. 

"Consistent with the flexibility provided in the statute, the board recommends that rulemakers consider crafting credit risk-retention requirements that are tailored to each major class of securitized assets," the report said.

Royal Bank of Scotland prosecutes Goldman Sachs for hundreds of millions of dollars to add to $100 million it received as part of a settlement over the marketing of a subprime mortgage product.

As it’s known, resolving a high-profile government case related to the mortgage meltdown, Goldman Sachs has admitted to pay a record $550 million to settle civil fraud charges that it misled buyers of complex investments.