RBS to pay $275m to settle US mortgage lawsuit
RBS has agreed to pay $275m (£164m) in cash to settle a US class action lawsuit brought by pension funds accusing it of misleading investors in the sale of mortgage-backed securities (MBS).
The case was brought in 2008, and concerned the packaging and sale of 14 MBS deals known as “Harborview”.
The lender was accused of hiding the fact that the mortgage loans didn't meet with underwriting guidelines.
The accord is the third-largest settlement in US litigation against a bank that sold the mortgage securities which were central to the financial crisis.
Last month, RBS said it’s set aside £3.1bn to cover legal proceedings against it – including £1.9bn to deal with claims mainly related to mortgage-back securities.