Banks to Pay SEC for Financial Crisis Fraud

A number of top Wall Street banks are on the verge of settling fraud allegations with the SEC for the mortgage-bond shenanigans that led to the financial crisis, sources tell the Wall Street Journal. The cases are being handled individually, since each bank faces substantially different charges, with the first settlement expected as soon as next week. They represent regulators’ biggest attempt so far to hold Wall Street accountable for the crisis.

The fines likely won’t be any higher than the record $550 million Goldman Sachs paid over a mortgage-bond deal last year. The banks in question include JP Morgan, Citigroup, Morgan Stanley, UBS AG, and Merrill Lynch, which is now owned by Bank of America. The settlements come amidst mounting political pressure to punish the banks for their misdeeds, including yesterday’s scathing Senate report. To date, no criminal cases have been brought against any bank executives involved in the crisis. (More financial crisis stories.)