RBS Settles With FHFA For US$99.5 Million

On June 19, the Federal Housing Finance Agency (FHFA) and RBS Securities Inc. (RBS) announced a US$99.5 million settlement of claims that FHFA brought against RBS in a case against a number of financial institutions in the United States District Court for the Southern District of New York.  FHFA alleged that RBS made false and misleading statements in disclosures relating to six RMBS securitizations.  It brought claims for violations of Sections 11 and 12(a)(2) of the Securities Act of 1933, as well as the Virginia Securities Act.  The settlement does not resolve claims that FHFA brought against RBS in two other actions pending in the Southern District of New York and the District of Connecticut, nor does it resolve FHFA's claims against any other defendant.  RBS did not admit any liability or wrongdoing.  Settlement Agreement