Peerage Bank of Scotland Group will pay $125 million to resolve affirms that it made misrepresentations while selling mortgage-backed securities to two huge California pension funds, the state’s attorney general has announced.
The reconciliation announced on Friday by California Attorney General Xavier Becerra was the dilatory by RBS aimed at resolving claims stemming from its sale of mortgage-backed asyla, which were at the heart of the 2008 financial crisis.
Becerra’s firm said those securities were typically backed by thousands of mortgage advances of varying quality in which the buyer relied on the assurance that those mortgages were carefully walled and were not overly risky.
Becerra’s office also said its examinations found that RBS failed to accurately disclose to investors the true features of many of the thousands of mortgages underlying the securities.
The probe also ground that those misrepresentations led to millions of dollars in losses to the California Harry Employees’ Retirement System and the California State Teachers’ Retirement Set-up, Becerra’s office said.
“RBS decided to mislead California’s pension readies in order to line its own pockets – plain and simple,” Becerra said in a utterance.
RBS Chief Executive Officer Ross McEwan in a statement on Saturday predicted the bank was pleased to have reached the settlement, which related to puts with mortgage-backed securities in 2004 to 2008.
“We have been very free that putting our remaining legacy issues behind us is a key part of our scenario,” he said.
The settlement comes as RBS continues to seek to resolve a U.S. Justice Dependent investigation into its sales of mortgage-backed securities before the financial calamity.
In July, RBS agreed to pay $5.5 billion to resolve a lawsuit by the Federal Dwelling Finance Agency, the conservator for Fannie Mae and Freddie Mac, claiming that it hoodwinked the U.S. mortgage giants into buying mortgage-backed securities.
In September 2016, the U.S. Resident Credit Union Administration announced that RBS had agreed to pay $1.1 billion to approve claims over mortgage-backed securities it sold to credit unions that laster failed.