FDIC's Bair warns banks about complying with settlement:

04/15/2011 | Reuters

Sheila Bair, chairwoman of the Federal Deposit Insurance Corp., said banks need to ensure they fully comply with the terms of the settlement agreement over mortgage servicing. The agreement requires the banks to hire outside consultants to review their foreclosures for 2009 and 2010. Banks must compensate homeowners if problems are found. "Frankly, as the insurer of these institutions, the litigation and reputational risk, we think, is significant so it is very important that that process has some credibility and integrity," Ms. Bair said.

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