Global investment bank Royal Bank of Scotland recently agreed to pay $1.1 Billion to the National Credit Union Administration in order to settle claims that RBS made material misrepresentations in connection with its sale of residential mortgage-backed securities. The settlement is one of the largest paid by banks over accusations stemming from sales that contributed to the 2008 financial crisis, and it brings NCUA’s total recoveries in related litigation to over $4 Billion. Net proceeds from the recovery will be used to cover losses sustained by failed corporate credit unions who invested in the securities sold by RBS.
The settlement is the culmination of over four years of litigation in federal courts in New York, California, and Kansas. Elias LLC represented NCUA along with co-counsel Korein Tillery and Kellogg Huber.
Read related media coverage:
Wall Street Journal: RBS Pays $1.1 Billion to Settle Mortgage-Backed Securities Lawsuits in the U.S.