This story appeared in Bank Digest.
The Royal Bank of Scotland Group plc has agreed to pay $5.5 billion to resolve claims brought against RBS, related companies, and specifically named individuals by the FHFA in relation to RBS's issuance and underwriting of approximately $32 billion of residential mortgage-backed securities.
The FHFA had charged RBS with violating federal and state securities laws in connection with private-label RMBS trusts purchased by Fannie Mae and Freddie Mac between 2005 and 2007. RBS will pay approximately $4.525 billion to Freddie Mac and approximately $975 million to Fannie Mae. As a part of the settlement agreement, RBS did not admit to any wrongdoing.