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GE to pay $1.5 billion penalty related to subprime mortgages

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GE to pay $1.5 billion penalty related to subprime mortgages
FILE PHOTO: The logo of U.S. conglomerate General Electric is pictured at the company's site of its energy branch in Belfort, France, February 5, 2019. REUTERS/Vincent Kessler   -   Copyright  VINCENT KESSLER(Reuters)
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(Reuters) – General Electric Co will pay a $1.5 billion (1.15 billion pounds) civil penalty to resolve claims related to subprime residential mortgage loans offered by its WMC Mortgage unit, the U.S. Department of Justice said on Friday.

The settlement resolves claims that GE and WMC misrepresented the quality of the loans, as well as WMC’s internal quality and fraud controls, in connection with the marketing and sale of residential mortgage-backed securities.

(Reporting by Jonathan Stempel in New York, Editing by Franklin Paul)

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