Loan News

Shares of Goldman Sachs added to their losses Thursday afternoon following word that he Federal Reserve sanctioned the firm over deficient practices involving residential mortgage loan servicing and foreclosure processing at its former subsidiary, Litton Loan Servicing LP.

The Federal Reserve ordered Goldman Sachs to hire an outside consultant to review mortgage loans serviced by a subsidiary in order to identify and compensate borrowers who were wrongly foreclosed upon, the central bank announced on Thursday.

The Federal Reserve on Thursday sanctioned Goldman Sachs over deficient practices involving residential mortgage loan servicing and foreclosure processing at its former subsidiary, Litton Loan Servicing LP, in what's commonly referred to as the "robo-signing" scandal.

* Belgian finmin urges euro zone bonds, larger bailout fund * Spain announces further austerity measures * Austria presents collateral-for-loans proposal * Greek economy to shrink even more than thought ...

A spokesman for UBS AG said Friday that the bank didn't borrow from the U.S. Federal Reserve via a swap arrangement with the Swiss National Bank. Rival Credit Suisse AG also reportedly said it wasn't behind a $200 million loan made by the Fed to the Swiss central bank.

American International Group [s:AIG] has repaid $2.15 billion to the Treasury Department, the agency announced Thursday. The Treasury's remaining investment in AIG is $51 billion. Separately, the New York Fed still has $18.8 billion in outstanding loans to the insurer.

A little-noticed deal requiring Greece to put up collateral in order to receive a bailout loan from Finland triggered similar requests from several other eurozone countries Thursday, complicating a broader 109 billion euro Europe-wide bailout of Greece.

WASHINGTON, Aug 16 (Reuters) - Community banks are stillstruggling with troubled construction and commercial realestate loans but Federal Reserve bank examiners are not beingunduly harsh in their treatment ...

U.S. banks continue to ease lending standards and most terms on all major non-real estate loans during the past three months, the Federal Reserve reported in its quarterly survey of senior loan officers.

Among the stock activity stories for Monday, Aug. 15, from AP Business News: -- Shares of Cathay General Bancorp Inc. leapt after an upgrade from RBC Capital Markets, which said the bank holding company recently has been improving its profitability and showing strong growth in commercial and industrial loans.

U.S. banks continued to ease restrictions on most types of loans over the past three months except in the real estate sector, according to a survey of the banks' senior loan officers released Monday by the Federal Reserve.

Treasury's T-bill Supply Plan May Bring Pain The Treasury's announcement that it will restrain the sale of certain T-bills has boosted the short-dated U.S. government bond market. But investors in other markets that need those securities for short-term loans may feel pain.

(Deletes duplicate words in contact details at end of story) * VTB needs over 75 pct to unlock state bailout * A $14 bln bailout essential to cover doubtful loans (Adds quotes, further details and background) ...

At the height of the financial crisis, the Federal Reserve evoked emergency powers to make loans to Wall Street firms without bothering to adequately explain the legal grounds for those loans.

The Treasury Department on Friday will report that its program to rid bank balance sheets of toxic residential mortgage loans is still profitable, but less so after a decline in the second quarter, according to people familiar with the data.

The Federal Reserve on Wednesday slapped an $85 million fine on Wells Fargo & Co for allegedly steering borrowers into high-cost subprime mortgage loans even though they qualified for safer loans.

* China economic growth eased "hard-landing" concern * Bernanke says Fed to keep loans cheap if U.S. slows * China growth boosts copper, other commodities prices * Latin American bond spreads ...

Goldman Sachs Group Inc. borrowed $15 billion from the Federal Reserve in late 2008, the biggest single loan in a previously-undisclosed crisis-era program, according to a published report Thursday.

Goldman Sachs, Lehman Brothers, and European banks RBS and UBS were the biggest beneficiaries of very short-term Federal Reserve loans extended at the height of the financial crisis, according to data released on Wednesday.

Fed Unveils More Details of Crisis Loans The Fed unveiled more details of its lending to banks at the height of the 2008 financial crisis, in the latest disclosure of the central bank's controversial actions.