RBS to Pay $129 Million to Resolve National Credit Union Administration Suit
On Tuesday, RBS Securities Inc. agreed on a $129.6 million settlement to resolve claims by the National Credit Union Administration (NCUA) over the sales of mortgage-backed securities. The subject sales allegedly caused the failure of two credit unions.
In an offer of judgment filed in a NY federal court, RBS, the securities arm of Royal Bank of Scotland PC, (RBS) also agreed to pay the NCUA reasonable attorneys’ fees and costs. The U.S. credit union regulator is acting as the liquidating agent for the two failed federal credit unions. Representatives for the parties did not immediately respond to requests for comment Tuesday.
The proposed deal would end a suit brought by the NCUA in 2013 which accused RBS of misrepresenting the quality of the mortgage loans backing the securities sold to the two credit unions from 2005 to 2007/
The experienced securities litigation attorneys at Colling Gilbert Wright have litigated and resolved hundreds of FINRA arbitration claims, many involving mortgage-backed securities. If you believe you lost money due to negligence or fraud on the part of your FINRA registered broker dealer, please contact us for a free case evaluation.