WASHINGTON Jan 16 Goldman Sachs Group Inc
and Morgan Stanley will pay $557 million in cash
and other assistance to troubled borrowers to end a case by case
review of foreclosures required by U.S. regulators.
The U.S. Federal Reserve said on Wednesday the two banks
will pay $232 million to eligible borrowers and $325 million in
loan modifications and forgiveness.
The agreement is similar to the $8.5 billion deal reached
between the Fed, the Office of the Comptroller of the Currency,
and 10 other bank servicers on Jan. 7.
The Fed had previously ordered Goldman and Morgan Stanley to
review foreclosures conducted by mortgage servicing business the
two investment banks purchased in the run-up to the subprime
mortgage crisis and have since sold.