Articles Tagged with Royal Bank of Scottland

On November 7, 2013, the Securities and Exchange Commission (SEC) today charged RBS Securities Inc., a subsidiary of the Royal Bank of Scotland plc, with misleading investors in a 2007 subprime residential mortgage-backed security (RMBS) offering.  RBS agreed to settle the matter and pay more than $150 million, which the SEC will use to compensate investors for harm suffered as a result of RBS’s conduct.

According to the SEC, RBS told investors that the loans backing the offering “generally” met the lender’s underwriting guidelines even though more than 25% did not comport with the stated guidelines and should have been entirely excluded form the offering. RBS, then known as Greenwich Capital Markets, quickly reviewed a very small portion of the loans and was paid approximately $4.4 million for its work as the lead underwriter on the transaction, the SEC said in a complaint filed in federal court in Connecticut.

“In its rush to meet a deadline set by the seller of these loans, RBS cut corners and failed to complete adequate due diligence, with predictable results,” said George S. Canellos, co-director of the SEC’s Division of Enforcement. “Today’s action punishes that misconduct and secures more than $150 million in relief for those harmed by this shoddy securitization.”

Contact Information
Please enter your namePlease enter your valid emailPlease enter your phone
Powered by
logo image
Dark mode

Liveadmins