A bankruptcy judge has approved a settlement between the Federal Deposit Insurance Corp. (FDIC) and the now-defunct Taylor Bean & Whitaker (TBW) over the ownership of more than $1 billion in disputed loans and mortgage-related assets.

Judge Jerry A. Funk of the U.S. Bankruptcy Court approved the deal resolving one of the messiest recent collapses in the nation's mortgage meltdown. A few months back, TBW's CEO Lee Farkas was indicted on multiple fraud charges regarding the company.

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