Nomura and RBS agree to pay $839m over false mortgage statements

RBS building

Nomura and Royal Bank of Scotland have agreed to pay up to $33m on top of $806m that a U.S. judge ordered them to pay for making false statements in selling mortgage-backed securities.

Reuters reports that the agreement with the Federal Housing Finance Agency was disclosed in court papers filed last week in Manhattan federal court and covers legal costs the regulator incurred taking the banks to trial earlier this year.

The FHFA had sued the banks in its role as conservator for mortgage giants Fannie Mae and Freddie Mac, which had bought $2bn in securities from them ahead of the 2008 financial crisis.

Cote awarded $806m to the FHFA and also awarded the regulator its costs and attorneys fees, sums that Friday's agreement covers.

To access the complete Reuters article hit the link below:

Nomura, RBS liability in U.S. mortgage bond case upped to $839 million

Glencore to suspend dividend, raise equity to cut debt

Have something to tell us about this article?

JefferiesAnd the Best Place to Work in the global financial markets 2018 is...