RBS Settles Mortgage-Securities Case With Credit Union Regulator

Royal Bank of Scotland Group Plc agreed to pay $129.6 million to resolve a lawsuit claiming it sold mortgage-backed securities to now-failed credit unions in the U.S.

The offer by two RBS units isn’t an admission of liability, according to a filing late Tuesday in a New York federal court. The National Credit Union Administration Board sued the units on behalf of the now-defunct Southwest Corporate Federal Credit Union and Members United Corporate Federal Credit Union in 2013.

The NCUA, which oversees federal credit unions, has filed similar lawsuits including against units of HSBC Holdings Plc and Bank of America Corp. for securitized residential mortgages that failed credit unions had invested in.

The case is National Credit Union Administration Board v. RBS Securities Inc., 13-6726, U.S. District Court for the Southern District of New York (Manhattan).

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