(CN) - The Royal Bank of Scotland on Wednesday reached a $5.5 billion settlement with the Federal Housing Finance Agency over mortgage-backed securities issued before the financial crisis.
The deal resolves claims regarding the issuance and underwriting of approximately $32 billion \ of residential mortgage-backed securities.
In a written statement, RBS CEO Ross McEwan said “Today’s announcement is an important step forward in resolving one of the most significant legacy matters facing RBS and is further evidence of the determination of the bank’s leadership to put our remaining issues behind us.
“This settlement is a stark reminder of what happened to this bank before the financial crisis, and the heavy price paid for its pursuit of global ambitions,” McEwan added.
Under the settlement, RBS will pay $5.5 billion, but be reimbursed for $754 million under indemnification agreements with third parties.
Subscribe to Closing Arguments
Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.
Additional Reads
-
-
Labor Department expands overtime pay eligibility April 23, 2024