Virginia in $63M Securities Settlement With 11 Banks – NMP Skip to main content

Virginia in $63M Securities Settlement With 11 Banks

Jan 25, 2016
Virginia Attorney General Mark R. Herring has announced a $63 million settlement involving 11 financial institutions charged with selling the state government and the Virginia Retirement System (VRS) residential mortgage-backed securities (MBS)

Virginia Attorney General Mark R. Herring has announced a $63 million settlement involving 11 financial institutions charged with selling the state government and the Virginia Retirement System (VRS) residential mortgage-backed securities (MBS) that later turned toxic.

"This case breaks new ground for Virginia, recovering millions for Virginia taxpayers from banks that we alleged had misrepresented the products they sold to the Commonwealth," said Herring in a statement issued by his office. "[This] settlement, which represents significant relief to VRS, taxpayers and pensioners of the Commonwealth, is one of the largest of its kind in the nation."

Herring’s office stated that the financial institutions “have admitted no liability” in connection to the charges brought against them and that all outstanding legal claims were being dismissed in exchange for the penalties paid by each company. It was not explained why Herring opted to time his announcement of all 11 settlements in one sweep.

The settlements involve $19.5 million from the combined Countrywide Securities Corp and Merrill Lynch, $10 million from RBS Securities Inc., $9 million from Barclays Capital Inc., $6.9 million from Morgan Stanley, $5.6 million from Deutsche Bank Securities Inc., $4.75 million from Citigroup Global Markets Inc., $2.9 million from Goldman Sachs, $2.5 million from HSBC Securities (USA) Inc., $1.2 million from Credit Suisse Securities (USA) LLC and $850,000 from UBS Securities LLC. 

About the author
Published
Jan 25, 2016
Jobs Report Comes In Weak After Mortgage Rates Surge

Employers added just 29,000 jobs in September, sending Treasury yields lower and offering a potential counterweight to the recent rise in mortgage rates

Oct 02, 2026
Price Cuts Hit Four-Year High As Mortgage Rates Top 7%

More than one in five listings took a price cut in September, but pending sales still posted their sharpest annual decline since March 2025

Oct 01, 2026
Serious Mortgage Delinquencies Rise 19% After Five Months Of Improvement

ICE data shows 574,000 mortgages were at least 90 days past due in August, while early-stage delinquencies remained below year-ago levels

Sep 29, 2026
Smaller Down Payments Give Buyers More Room, But Rates Limit The Savings

The typical down payment fell 9% from a year ago, while shifting market conditions are giving originators different affordability conversations across the country

Sep 25, 2026
Mortgage Rates Break 7% Just As Builders Find A Way To Move Buyers

New-home sales rose 6.4% in August as builders cut prices, offered incentives, and sold more lower-priced homes. Now mortgage rates are moving against buyers again

Sep 25, 2026
Borrowers Want Digital Closings, But Some Originators Remain Hesitant

ServiceLink finds 45% of surveyed LOs cite borrower reluctance as a barrier, even though most recent buyers say digital options would influence their choice of mortgage provider

Sep 23, 2026