RBS: agrees to US settlement for financial crisis era case
(CercleFinance.com) - Royal Bank of Scotland has agreed to a 4.
9 billion dollar settlement with the US Department of Justice over toxic mortgage securities the bank issued during the 2008 financial crisis.
The settlement resolved federal civil claims that RBS misled investors in the underwriting and issuing of residential mortgage-backed securities (RMBS) between 2005 and 2008, the DoJ said.
RBS failed to disclose systemic problems with originators' loan underwriting, and provided investors with inaccurate loan data, according to the Department of Justice.
The penalty is the largest imposed on a single entity for financial crisis-era misconduct, the Justice Department said.
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