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September 18, 2008 |
On September 9, 2008, the U.S. Federal Trade Commission announced that the New York-based Bear Stearns Companies, LLC and its subsidiary Irving, Texas-based EMC Mortgage Corporation, will pay $28 million to settle the federal charges that the companies misrepresented the amounts borrowers owed, forced the consumers to pay unauthorized expenses, such as late fees for property inspection and loan modification, and engaged in unlawful and abusive collection practices in servicing consumers' home mortgage loans. Under the settlement, Bear Stearns and EMC will halt the practices and institute a data integrity program to ensure the accuracy and completeness of consumers’ loan information. Read the Press Release
On May 30, 2008, Bear Stearns was acquired by New York-based JPMorgan Chase & Co. for a fire-sale price of $2.2 billion, or $10 a share, after the Wall Street firm nearly collapsed from the credit crunch.
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