RBS faces $450m fine over false mortgage statements
Royal Bank of Scotland could face fines of nearly half a billion dollars after it made false statements when selling mortgage-backed securities in the United States.
Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in C:\inetpub\wwwroot\2025.financialreporter.co.uk\htdocs\templates\front-end\partials\article_blockquote.php on line 2
Denise Cote, a senior federal judge, ruled that RBS and Japanese bank Nomura made false statements when they sold the securities prior to the 2008 financial crisis.
Cote said that the “offering documents did not correctly describe the mortgage loans”, and that "the magnitude of falsity, conservatively measured, is enormous".
The US regulator could recover around $450m (£289m).
The lawsuit is the first to reach trial out of the 18 banks that sold $200 billion of mortgage-backed securities to Fannie Mae and Freddie Mac.
Breaking news
Direct to your inbox:
More
stories
you'll love:
This week's biggest stories:
Lloyds
Lloyds Banking Group launches £5,000 deposit mortgage
Mortgage Rates
Barclays relaunches sub-4% mortgage rate
FCA
FCA bans and fines director £755,000 for advice and insurance failures
Bank Of England
Bank of England holds interest rates at 3.75% in 8-1 vote
Mortgages
Mortgage affordability at tightest level since 2008: UK Finance
Nationwide
Nationwide cuts mortgage rates by up to 0.36%
