General Electric Co has agreed to settle a federal agency's lawsuit accusing it of misleading Freddie Mac into buying $549 million of mortgage-backed securities, the Federal Housing Finance Agency said on Wednesday. The settlement is the first to result from a series of lawsuits the FHFA filed against Wall Street banks in 2011 in its role as conservator for Fannie Mae and Freddie Mac.
Terms of the accord were not announced.
"This settlement resolves the dispute between FHFA and GE consistent with FHFA's responsibilities as conservator of Freddie Mac," Alfred Pollard, the agency's general counsel, said in a statement. "FHFA is pleased this lawsuit has been resolved and appreciates the work of Freddie Mac in this matter."
A spokesman for GE had no immediate comment.
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