$5.5 Billion Settles One of Two Mortgage-Backed Securities Lawsuits for RBS

Savage, Combs and Villoch, PLLC
07
Jul

mortgage-backed securities lawsuitsThe Royal Bank of Scotland (RBS) recently reached a settlement sum of $5.5 billion with the U.S. Federal Housing Finance Agency (FHFA) in the agency’s lawsuit.

One down, one to go

This settles at least one of the the two mortgage-baked securities lawsuits against RBS in U.S. courts. Another lawsuit remains pending with the U.S. Department of Justice (DOJ). According to the Reuters article, experts are estimating at least $10 billion will go towards the settlement. It is slated to be the largest fine ever paid by the bank in U.S. courts.

Other mortgage-backed securities lawsuits?

This settlement is also the last of the largest of the 17 mortgage-backed securities lawsuits the FHFA has brought against various banks since 2011, when it was named as conservator of mortgage lending giants, Fannie Mae and Freddie Mac.

Since then, the FHFA has managed to recover nearly $18 billion in settlements from various big banks, according to a Reuters report.

You probably recognize most of the 17 names on the FHFA’s list. They represent some of the U.S.’ largest investment banks. Here’s a quick recap of which banks the FHFA brought mortgage-backed securities lawsuits. The figures represent the settlements reached so far:

Resources

You can learn more about the FHFA’s ongoing mortgage-backed securities lawsuits on their website. To learn more about how to protect your investments against securities fraud or to recover investment losses, contact our team of investment-loss recovery attorneys. Check out our blog to stay up-to-date on business and investment news along with legislative updates.