Nomura said to hold out on mortgage settlement

Nomura Holdings Inc. is balking at following 16 other banks in settling a U.S. regulator’s allegations that Wall Street sold flawed mortgage securities during the housing boom, according to two people with knowledge of the matter.

Bloomberg News reports that Nomura’s resistance is less about the size of a penalty, which one estimate says won’t exceed $300 million, than its belief that the U.S. unit sued by the Federal Housing Finance Agency did nothing wrong, said the people, who asked that they not be named because the negotiations are private.

Nomura also asserts Fannie Mae and Freddie Mac might not suffer losses on the $2 billion of bonds it sold them, the people said.

Nomura still has time to settle before a trial that’s scheduled to start in March. 

Hit the link below to access the complete Bloomberg News article:

Nomura Said to Balk at Settling Mortgage Bond Suit Filed by FHFA

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