RBS agrees $129.6 million mortgage settlement with U.S. regulator
Royal Bank of Scotland Group PLC has agreed to pay $129.6 million to settle claims by a U.S. regulator that the British lender sold toxic mortgage-backed securities to now-defunct U.S. credit unions, according to the court filing on Tuesday. The National Credit Union Administration, which regulates and supervises federal credit unions, in 2013 sued RBS and eight other banks for misrepresenting the real value of mortgage-backed securities they sold. In the RBS case, NCUA claimed the bank distorted the quality of mortgage loans backing securities bought by the credit unions in the run up to the financial crisis. RBS shares were up 0.2% in early Wednesday trade.
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