Items Tagged with 'RMBS fraud'

ARTICLES

  • Nomura paying $480 million in settlement over pre-crisis mortgage bonds

    Accused of misleading RMBS investors, including Fannie Mae and Freddie Mac
    Nomura Holding America and several of its affiliates will pay $480 million in a settlement with the Department of Justice over the companies’ mortgage bond activities in the run-up to the financial crisis. The DOJ claimed that Nomura misled investors, which included university endowments, retirement funds, federally insured financial institutions, Fannie Mae, and Freddie Mac, about the quality of the underlying loans between 2006 and 2007.
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  • HSBC to pay $765 million in settlement over pre-crisis mortgage bonds

    DOJ accused bank of selling mortgage-backed securities full of toxic loans
    HSBC will pay $765 million to the federal government as part of a settlement that covers the bank’s mortgage bond activities in the run-up to the housing crisis. The Department of Justice announced Tuesday that it reached a final settlement with HSBC that would resolve an investigation into the bank’s mortgage origination and securitization activities from 2005 to 2007.
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  • RBS to pay $20 million to Illinois pension funds over crisis-era mortgage bonds

    New settlement is bank’s eighth such settlement in recent years
    For the third time this year, the Royal Bank of Scotland is about to pay up over the bank’s mortgage practices in the run-up to the housing crisis. RBS has already reached a nearly $5 billion settlement with the Department of Justice and a $500 million settlement with the state of New York. Now, the bank has agreed to a new $20 million settlement with the state of Illinois.
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  • Merrill Lynch ordered to pay $15.7M for cheating customers in mortgage bond trades

    SEC orders company to pay up for misleading customers
    Merrill Lynch will pay $15.7 million to settle allegations that its employees misled mortgage bond customers and overcharged those customers residential mortgage-backed securities trades during a three-year period from 2009 through 2012, the Securities and Exchange Commission announced this week.
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  • RBS reaches $4.9 billion settlement with DOJ over pre-crisis mortgage bonds

    Proposed settlement would be far less than originally estimated
    For the second time this year and at least the seventh time in recent memory, the Royal Bank of Scotland is about to cut a massive check as part of a settlement over the bank’s mortgage practices in the run-up to the housing crisis. Back in March, it was a $500 million settlement with the state of New York. Now, RBS is preparing for a nearly $5 billion settlement with the DOJ that would cover the bank’s issuance and underwriting of mortgage-backed securities between 2005 and 2007.
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  • Former Cantor Fitzgerald mortgage bond trader found not guilty of securities fraud

    Feds rebuked twice in one week in pursuit of RMBS traders
    It has not been a good week in court for the federal government and its pursuit of fraud charges against mortgage bond traders. On Thursday, the Court of Appeals for the Second Circuit tossed the fraud conviction of former Jefferies mortgage-backed securities trader Jesse Litvak, marking the second time the government has failed in its five-year pursuit of Litvak. But that wasn’t the only defeat the government took in court on Thursday.
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  • Barclays agrees to pay $2 billion to settle crisis-era RMBS fraud charges

    Two subprime mortgage bond traders also fined $2 million
    Barclays Capital will pay $2 billion to the federal government to settle charges brought against the bank by the Department of Justice, which accused the company of misleading investors about the quality of the underlying subprime and Alt-A mortgages in $31 billion in mortgage bonds, which, as the DOJ put it, “proved to be catastrophic failures.”
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  • RBS reaches $125 million mortgage bond settlement with California

    Settlement covers “misrepresentations” of RMBS sold to state pension funds
    Earlier this year, the Royal Bank of Scotland finally reached a $5.5 billion settlement with the Federal Housing Finance Agency over alleged violations of federal and state securities laws in connection with private-label residential mortgage-backed securities trusts purchased by Fannie Mae and Freddie Mac from 2005 to 2007. But RBS’ legacy issues are not done and dusted yet.
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