Federal Regulators Reach $8.5B Foreclosure Settlement With Banks

The Federal Reserve and ten banks enter foreclosure pact.

Monday, the Federal Reserve and the OCC reached a $8.5B foreclosure settlement with ten banks.

Here’s more breaking news on the banking front: today an agreement on foreclosure abuses was reached with ten financial institutions. Federal regulators came to terms with large banks such as Citigroup and Bank of America in a pact worth 8.5 billion dollars.

Government regulators — namely the Federal Reserve and an independent bureau that’s part of the Treasury Department, the Office of the Comptroller of the Currency — are in negotiations with four other financial institutions for a settlement (HSBC is one of the four). Details are still forthcoming, but you can read more about the foreclosure pact over at the Wall Street Journal.