Bear Stearns' EMC unit receives FTC notice
Reuters, Tuesday April 1 2008
NEW YORK, April 1 (Reuters) - Bear Stearns Cos' EMC Mortgage Corp unit has received a notice from U.S. regulators that it may have violated laws regarding its servicing activities, a Tuesday filing shows.
The Federal Trade Commission staff believes EMC and Bear Stearns violated a number of federal consumer protection statutes, according to a filing by a Bear affiliate with the U.S. Securities and Exchange Commission.
The staff delivered a draft complaint and draft consent order asking for changes in business practices and unspecified monetary payments, according to the filing. EMC expects to engage in settlement talks before a formal complaint is filed, the filing shows.
Bear, once the fifth-largest U.S. investment bank, faced a run on the bank in March and was forced to sell itself to JPMorgan Chase & Co.
(Reporting by Dan Wilchins)