RBS in $20M RMBS Settlement with Illinois

Phil Hall

Jul 05, 2018

Anow, creator of software for real estate appraisal offices, has announced that it has forged a partnership with the National Association of Appraisers (NAA)

Royal Bank of Scotland (RBS) has agreed to a $20 million settlement with the State of Illinois in connection to the bank’s marketing and sale of risky residential mortgage-backed securities (RMBS) in the years before the 2008 recession.

The State will divide the settlement proceeds between the Teachers Retirement System of the State of Illinois, the State Universities Retirement System of Illinois and the Illinois State Board of Investment, which oversees the State Employees’ Retirement System. This is the eighth settlement that Illinois has secured with a major financial services entity connected to problematic RMBS sales in the previous decade.

“With this settlement, I have recovered over $475 million for Illinois pension systems and residents as a result of fraudulent conduct in the mortgage-backed securities market,” said Attorney General Lisa Madigan. “Nearly a decade after the economic crisis, I continue to recover critical funds for the state due to Wall Street’s misconduct.”

Link copied

Published

Jul 05, 2018

Regulation and Compliance

Fitch Places Fannie, Freddie On Negative Ratings Watch

Ties credit rating to outcome of U.S. debt limit negotiations.

As negotiations over raising the federal debt ceiling drag on, the lack of a deal is starting to have side effects. Late Thursday, Fitch Ratings announced it had placed Fannie Mae’s and Freddie Mac’s debt ratings on Ratings Watch Negative (RWN). The announcement followed Fi...

Operations

JPMorgan Chase To Cut 1,000 Jobs At First Republic Bank

Acquired the bank earlier this month after it was seized by federal regulators.

Less than a month after acquiring failed First Republic Bank, JPMorgan Chase & Co. plans to reduce the bank’s staff by 15%, or about 1,000 workers. According to published reports, the nation’s largest bank by assets on Thursday offered full-time or temporary roles to ne...