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  • Freddie Mac increased its purchases of residential mortgage loans from lenders 19% in May from the preceding month, after pulling back 38% in April from March.
  • Spain’s Bankia, CatalunyaCaixa, NovaGalicia and Banco de Valencia are shifting an estimated EUR15 billion ($18.73 billion) in toxic loans to a state-owned bad bank so that they can secure bailout funds from the European Union.
  • European regulators are negotiating whether to make the offloading of toxic assets from balance sheets a condition for banks for receiving bailout funds, according to Luis de Guindos, Spain’s economy minister. .
  • Bank of America has named Diego De Giorgi as co-head of corporate and investment banking in Europe, the Middle East and Africa together with Bob Elfring, the current head of investment banking for northern Europe.
  • Credit Suisse is planning to cut up to a third of its senior European investment banking staff as part of its earlier announced 3,500 personnel reduction.
  • U.S. District Judge Lewis Kaplan of New York has a $40 million settlement in a class action against officers and directors formerly affiliated with Lehman Brothers Holdings who allegedly misled investors concerning the credit quality of billions of dollars of mortgage pass-through certificates.
  • Dublin-based Sealink has added Deutsche Bank to its list of financial institutions it has sued alleging fraud involving the sale of residential mortgage-backed securities.
  • Lloyds Banking Group is said to be considering lowering the asking prices for the 632 branches it is looking to sell in order to revive a deal with the Co-operative Bank.
  • U.S.-based Pricoa Mortgage Capital has closed a £70 million ($109.14 million) commercial real estate loan in the U.K., its first it launched its European operations earlier this year.