{"id":5932,"date":"2016-01-26T00:00:00","date_gmt":"2016-01-26T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2016\/01\/citigroup_morgan_stanley_goldm"},"modified":"2021-09-20T15:43:01","modified_gmt":"2021-09-20T20:43:01","slug":"citigroup-morgan-stanley-goldm","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/citigroup-morgan-stanley-goldm\/","title":{"rendered":"Citigroup, Morgan Stanley, Goldman Sachs, and Other Big Banks to pay $63M to Virginia to Settle RMBS Fraud Claims"},"content":{"rendered":"<p>The state of Virginia has arrived at a $63M settlement with 11 banks to resolve claims that they bilked the state\u2019s retirement system by purportedly misrepresenting the quality of residential mortgage-backed securities in the run up to the 2008 financial crisis. The resolution settles all claims against the financial firms accused of causing financial harm to the Virginia Retirement system and its taxpayers and pensioners. <\/p>\n<p><em>The banks involved will pay the following amounts respectively to settle, including:<\/em><\/p>\n<p>\u00b7      <a href=\"https:\/\/www.investorlawyers.com\/ubs-painewebber-background-information.html\">UBS Securities<\/a> for $850K<br \/>\n\u00b7      <a href=\"https:\/\/www.investorlawyers.com\/bank-of-america-background-information.html\">Bank of America\u2019s<\/a> <a href=\"https:\/\/www.investorlawyers.com\/merrill-lynch-background-information.html\">Merrill Lynch, Pierce, Fenner &amp; Smith, Inc. <\/a>and Countrywide Securities Corp. (BAC) for $19.5M<br \/>\n\u00b7      Credit Suisse Securities (CS) for $1.2M <br \/>\n\u00b7      RBS Securities (RBS) for $10M<br \/>\n\u00b7      HSBC Securities (HSBC) For $2.5M<br \/>\n\u00b7      Barclays Capital (BARC) for $9M<br \/>\n\u00b7      Goldman Sachs &amp; Co. (GS) for $2.9M<br \/>\n\u00b7      Morgan Stanley &amp; Co. (MS) for $6.9M<br \/>\n\u00b7      <a href=\"https:\/\/www.investorlawyers.com\/citigroup-background-information.html\">Citigroup Global Markets (C) <\/a>for $4.8M<br \/>\n\u00b7      Deutsche Bank Securities (DB) for $5.6M<\/p>\n<p>The state lost $383M over RMBS it purchased from 2004 to before 2010 and it had to sell most of these securities, which were toxic and constructed on junk mortgages. The settlement is the largest non-healthcare related financial recovery in a case involving Virginia Fraud Against Taxpayers Act-related violations. However, according to the state\u2019s Attorney General Mark Herring, even though the firm is settling it is not denying or admitting liability.<\/p>\n<\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/citigroup-morgan-stanley-goldm\/#more-5932\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The state of Virginia has arrived at a $63M settlement with 11 banks to resolve claims that they bilked the state\u2019s retirement system by purportedly misrepresenting the quality of residential mortgage-backed securities in the run up to the 2008 financial crisis. The resolution settles all claims against the financial firms accused of causing financial harm [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3751,3756,3820,3752,3947,3800,3787,3757,3755],"tags":[2557],"class_list":["post-5932","post","type-post","status-publish","format-standard","hentry","category-bank-of-america","category-barclays-capital","category-citigroup","category-financial-firms","category-goldman-sachs","category-merrill-lynch","category-morgan-stanley","category-mortgagebacked-securities","category-ubs","tag-rmbs"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Citigroup, Morgan Stanley, Goldman Sachs, and Other Big Banks to pay $63M to Virginia to Settle RMBS Fraud Claims &#8212; Investor Lawyers Blog &#8212; January 26, 2016<\/title>\n<meta name=\"description\" content=\"The state of Virginia has arrived at a $63M settlement with 11 banks to resolve claims that they bilked the state\u2019s retirement system by purportedly &#8212; January 26, 2016\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/citigroup-morgan-stanley-goldm\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Citigroup, Morgan Stanley, Goldman Sachs, and Other Big Banks to pay $63M to Virginia to Settle RMBS Fraud Claims &#8212; Investor Lawyers Blog &#8212; January 26, 2016\" \/>\n<meta name=\"twitter:description\" content=\"The state of Virginia has arrived at a $63M settlement with 11 banks to resolve claims that they bilked the state\u2019s retirement system by purportedly &#8212; January 26, 2016\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; 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January 26, 2016","twitter_description":"The state of Virginia has arrived at a $63M settlement with 11 banks to resolve claims that they bilked the state\u2019s retirement system by purportedly &#8212; January 26, 2016","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/citigroup-morgan-stanley-goldm\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/citigroup-morgan-stanley-goldm\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Citigroup, Morgan Stanley, Goldman Sachs, and Other Big Banks to pay $63M to Virginia to Settle RMBS Fraud Claims","datePublished":"2016-01-26T06:00:00+00:00","dateModified":"2021-09-20T20:43:01+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/citigroup-morgan-stanley-goldm\/"},"wordCount":370,"keywords":["RMBS"],"articleSection":["Bank of America","Barclays Capital","Citigroup","Financial Firms","Goldman Sachs","Merrill Lynch","Morgan Stanley","Mortgage-Backed Securities","UBS"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/citigroup-morgan-stanley-goldm\/","url":"https:\/\/www.investorlawyers.com\/blog\/citigroup-morgan-stanley-goldm\/","name":"Citigroup, Morgan Stanley, Goldman Sachs, and Other Big Banks to pay $63M to Virginia to Settle RMBS Fraud Claims &#8212; 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