RBS loses bid to escape U.S. mortgage lawsuit

RBS building

Royal Bank of Scotland has lost a bid to escape a U.S. regulator's lawsuit accusing it of misleading Fannie Mae and Freddie Mac into buying $32bn of mortgage-backed securities ahead of the financial crisis.

Reuters reports that U.S. District Judge Alvin Thompson in Hartford, Connecticut, on Friday rejected the bank's bid to dismiss the lawsuit by the Federal Housing Finance Agency, the conservator for Fannie and Freddie since their government takeover in 2008.

The ruling is a major blow for RBS, which the FHFA recently estimated could face $13bn in damages if the case went to trial.

To access the complete Reuters article hit the link below:

RBS loses bid to toss U.S. regulator's mortgage bond lawsuit

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