{"id":6047,"date":"2016-10-10T20:21:11","date_gmt":"2016-10-11T01:21:11","guid":{"rendered":"https:\/\/www.institutionalinvestorsecuritiesblog.com\/?p=1123"},"modified":"2022-05-19T08:46:23","modified_gmt":"2022-05-19T13:46:23","slug":"rbs-securities-settles-mbs-fraud-case-connecticut-120m","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/rbs-securities-settles-mbs-fraud-case-connecticut-120m\/","title":{"rendered":"\u00a0RBS Securities Settles MBS Fraud Case With Connecticut for $120M"},"content":{"rendered":"
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Royal Bank of Scotland (RBS) subsidiary RBS Securities Inc. will pay the state of Connecticut $120M to settle allegations related to its dealings with mortgage-backed securities leading up to the 2008 financial crisis. According to state officials, RBS played a part in the crisis when it neglected to do the proper due diligence around certain tools for mortgage-backed investments. They accused the subsidiary of unethical and dishonest behavior, as well as of making false statements.\u00a0<\/span><\/div>\n<\/div>\n<\/div>\n
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They contend that RBS, which was one of the largest underwriters of residential mortgage-backed securities, did not make sure that the information it offered about RMBS deals was accurate.\u00a0<\/span>Connecticut Attorney General George Jepsen said that he and the state’s Department of Banking worked together in investigating this matter.\u00a0<\/span><\/div>\n

RBS doesn\u2019t securitize newly originated RMBSs anymore. It was, however, the lead underwriter for approximately 250 residential mortgage-backed securities between \u201905 and \u201908. Part of its job was to perform the due diligence on mortgage loans used for collateral. However, Connecticut claims that RBS\u2019s due diligence was \u201cinadequate,\u201d causing \u201comissions and misstatements\u201d to be made to the public and investors.\u00a0 They even contend that in certain instance, RBS rated certain loans\u00a0that<\/span>\u00a0had<\/span>\u00a0already been lower rated by third-party vendors with higher-grade ratings.\u00a0<\/span><\/div>\n
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Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Royal Bank of Scotland (RBS) subsidiary RBS Securities Inc. will pay the state of Connecticut $120M to settle allegations related to its dealings with mortgage-backed securities leading up to the 2008 financial crisis. According to state officials, RBS played a part in the crisis when it neglected to do the proper due diligence around certain […]<\/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":[3752,3757,3999,4036],"tags":[],"class_list":["post-6047","post","type-post","status-publish","format-standard","hentry","category-financial-firms","category-mortgagebacked-securities","category-rbs-securities","category-royal-bank-of-scotland"],"yoast_head":"\n\u00a0RBS Securities Settles MBS Fraud Case With Connecticut for $120M — Investor Lawyers Blog — October 10, 2016<\/title>\n<meta name=\"description\" content=\"Royal Bank of Scotland (RBS) subsidiary RBS Securities Inc. will pay the state of Connecticut $120M to settle allegations related to its dealings with — October 10, 2016\" \/>\n<meta name=\"robots\" content=\"index, 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