Royal Bank of Scotland will pay $125 million (£93.6 million pounds) to resolve claims that it made misrepresentations while selling mortgage-backed securities to two large California pension funds, the state’s attorney general said on Friday.
Reuters reports that the settlement announced by California Attorney General Xavier Becerra was the latest by RBS aimed at resolving claims stemming from its sale of mortgage-backed securities, which were at the heart of the 2008 financial crisis.
Becerra’s office said those securities were typically backed by thousands of mortgage loans of varying quality in which the buyer relied on the assurance that those mortgages were carefully screened and were not overly risky.
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