{"id":6103,"date":"2017-01-24T22:25:59","date_gmt":"2017-01-25T04:25:59","guid":{"rendered":"https:\/\/www.institutionalinvestorsecuritiesblog.com\/?p=1398"},"modified":"2022-03-22T15:06:51","modified_gmt":"2022-03-22T20:06:51","slug":"residential-mortgage-backed-securities-cases-societe-generale-settles-us-governments-securities-fraud-case-50m-judge-rules-institutional-investor-fraud-lawsuit-deuts","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/residential-mortgage-backed-securities-cases-societe-generale-settles-us-governments-securities-fraud-case-50m-judge-rules-institutional-investor-fraud-lawsuit-deuts\/","title":{"rendered":"Residential Mortgage-Backed Securities Cases: Soci\u00e9t\u00e9 G\u00e9n\u00e9rale  Settles US Government\u2019s Securities Fraud Case for $50M &#038; Judge Rules that Institutional Investor Fraud Lawsuit Against Deutsche Bank May Proceed\u00a0"},"content":{"rendered":"<p>\t\t\t\tIn a deal reached with the US Justice Department, Soci\u00e9t\u00e9 G\u00e9n\u00e9rale will pay $50M to settle civil charges accusing the bank of hiding that the residential mortgaged-backed securities (RMBS) that it promoted and sold were of poor quality. According to the government, the French bank made false representations involving the\u00a0SG Mortgage Securities Trust 2006-OPT2, a $780M debt issue that it organized more than a decade ago. As part of the settlement, Soci\u00e9t\u00e9 G\u00e9n\u00e9rale admitted that it hid how many of the loans underlying the RMBS shouldn\u2019t have been securitized or were not properly underwritten. <\/p>\n<p>In a statement of facts, Soci\u00e9t\u00e9 G\u00e9n\u00e9rale  took responsibility for its conduct. The bank admitted that it falsely represented that loans underlying the residential mortgage-backed security had been originated according to the underwriting guidelines of the loan originator. It also represented to investors that when the\u00a0SG 2006-OPT2 was originated, no loans in the RMBS had a combined loan-to-value ratio or loan-to-value greater than 100%&#8211;this is a claim that Societe General is now admitting was false.<\/p>\n<p>As a result of the bank\u2019s actions, said the DOJ, investors lost \u201csignificant\u201d amounts of money and they may lose more. Investors that were impacted include a number of financial institutions that are federally insured.<\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/residential-mortgage-backed-securities-cases-societe-generale-settles-us-governments-securities-fraud-case-50m-judge-rules-institutional-investor-fraud-lawsuit-deuts\/#more-6103\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a deal reached with the US Justice Department, Soci\u00e9t\u00e9 G\u00e9n\u00e9rale will pay $50M to settle civil charges accusing the bank of hiding that the residential mortgaged-backed securities (RMBS) that it promoted and sold were of poor quality. According to the government, the French bank made false representations involving the\u00a0SG Mortgage Securities Trust 2006-OPT2, a [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3817,3818,3752,3757],"tags":[2650,2723,2724],"class_list":["post-6103","post","type-post","status-publish","format-standard","hentry","category-credit-suisse","category-deutsche-bank","category-financial-firms","category-mortgagebacked-securities","tag-residential-mortgage-backed-securities","tag-societe-generale","tag-wertheim-jewish-education-trust"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Residential Mortgage-Backed Securities Cases: Soci\u00e9t\u00e9 G\u00e9n\u00e9rale Settles US Government\u2019s Securities Fraud Case for $50M &amp; Judge Rules that Institutional Investor Fraud Lawsuit Against Deutsche Bank May Proceed\u00a0 &#8212; Investor Lawyers Blog &#8212; January 24, 2017<\/title>\n<meta name=\"description\" content=\"In a deal reached with the US Justice Department, Soci\u00e9t\u00e9 G\u00e9n\u00e9rale will pay $50M to settle civil charges accusing the bank of hiding that the residential &#8212; January 24, 2017\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/residential-mortgage-backed-securities-cases-societe-generale-settles-us-governments-securities-fraud-case-50m-judge-rules-institutional-investor-fraud-lawsuit-deuts\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Residential Mortgage-Backed Securities Cases: Soci\u00e9t\u00e9 G\u00e9n\u00e9rale Settles US Government\u2019s Securities Fraud Case for $50M &amp; Judge Rules that Institutional Investor Fraud Lawsuit Against Deutsche Bank May Proceed\u00a0 &#8212; Investor Lawyers Blog &#8212; January 24, 2017\" \/>\n<meta name=\"twitter:description\" content=\"In a deal reached with the US Justice Department, Soci\u00e9t\u00e9 G\u00e9n\u00e9rale will pay $50M to settle civil charges accusing the bank of hiding that the residential &#8212; January 24, 2017\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Residential Mortgage-Backed Securities Cases: Soci\u00e9t\u00e9 G\u00e9n\u00e9rale Settles US Government\u2019s Securities Fraud Case for $50M & Judge Rules that Institutional Investor Fraud Lawsuit Against Deutsche Bank May Proceed\u00a0 &#8212; Investor Lawyers Blog &#8212; January 24, 2017","description":"In a deal reached with the US Justice Department, Soci\u00e9t\u00e9 G\u00e9n\u00e9rale will pay $50M to settle civil charges accusing the bank of hiding that the residential &#8212; January 24, 2017","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/residential-mortgage-backed-securities-cases-societe-generale-settles-us-governments-securities-fraud-case-50m-judge-rules-institutional-investor-fraud-lawsuit-deuts\/","twitter_card":"summary_large_image","twitter_title":"Residential Mortgage-Backed Securities Cases: Soci\u00e9t\u00e9 G\u00e9n\u00e9rale Settles US Government\u2019s Securities Fraud Case for $50M & Judge Rules that Institutional Investor Fraud Lawsuit Against Deutsche Bank May Proceed\u00a0 &#8212; Investor Lawyers Blog &#8212; January 24, 2017","twitter_description":"In a deal reached with the US Justice Department, Soci\u00e9t\u00e9 G\u00e9n\u00e9rale will pay $50M to settle civil charges accusing the bank of hiding that the residential &#8212; 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