RBS Will Pay N.Y. $500 Million Over Bogus Mortgage Marketing
- The deal boosts N.Y.’s mortgage recoveries to $3.7 billion
- Toxic mortgage-backed securities at the heart of the probe
A window reflects a Royal Bank of Scotland Group Plc (RBS) logo at a bank branch in London, U.K., on Friday, Feb. 23, 2018.
Photographer: Simon Dawson/BloombergThis article is for subscribers only.
Royal Bank of Scotland Group Plc agreed to pay $500 million to settle New York’s probe into its marketing of toxic mortgage-backed securities that triggered the financial crisis, moving the government-owned lender a step closer to resolving a series of costly U.S. investigations.
The deal boosts the bank’s U.S. settlement costs to $6 billion in less than a year for bundling dubious mortgages into top-rated securities and pitching them to investors in 2006 to 2008, before the housing bubble burst. In July, the lender agreed to pay $5.5 billion to the Federal Housing Finance Agency to resolve a parallel investigation.