RBS will pay $1.1 billion to tackle American regulator's mortgage cases
Royal Bank of Scotland Group or RBS is expected to pay up to $1.1 billion to tackle claims, which it sold toxic mortgage-backed securities to credit unions, which later failed, as the US National Credit Union Administration told on Tuesday.
The settlement with RBS brings the American regulator's recoveries against various financial institutions to $4.3 billion in lawsuits over their sale of mortgage-backed securities right before the 2008 financial meltdown.
NCUA Board Chairman Rick Metsger informed that the regulator was pleased with the settlement as well as plans to keep pursuing recoveries against financial companies.
The settlement actually resolves lawsuits filed in federal courts in Kansas and California in the NCUA's role as the liquidating agent for Western Corporate Federal Credit Union as well as US Central Federal Credit Union.
Under the settlement, RBS doesn’t actually admit fault, the NCUA told in a statement. The settlement comes on top of the previous deal in 2015, when RBS agreed to shell out up to $129.6 million in order to tackle a similar federal lawsuit the NCUA filed in New York.