"A U.S. congressional oversight panel asked regulators to delay a multibillion dollar mortgage settlement with 14 large banks so that the lawmakers could review the deal, according to a letter made available on Saturday.
"We would like more information about how the
potential settlement amount is to be determined in light of the
potential wrongdoing identified to date," said the January 4 letter to
Federal Reserve Chairman Ben Bernanke and the Comptroller of the
Currency Thomas Curry.
The top Republican and Democratic
lawmakers on the House of Representatives Oversight Committee asked
regulators how aid may be distributed and in what form, and what may
happen to homeowner files that are still awaiting review.
Wall Street Journal reported that the Federal Reserve was holding up the
settlement with banks to resolve allegations that they unlawfully cut
corners when foreclosing on delinquent borrowers.
settlement with five big banks - Bank of America, Wells Fargo & Co,
JPMorgan Chase & Co, Citigroup Inc and Ally Financial - would be
part of a larger deal that the Office of the Comptroller of the Currency
hopes will include 14 banks and total about $10 billion, a source told
Reuters last week"