US regulators sue RBS and JP Morgan
THE US credit union regulator filed lawsuits yesterday against Royal Bank of Scotland and JP Morgan Chase, alleging misrepresentation of investment vehicles backed by mortgages.
The National Credit Union Administration said the lawsuits seek damages in excess of $800m (£493m) and are related to the failure of five corporate credit unions.
The lawsuit against RBS Securities involves about $565m in claims, the agency spokesman said.
The move came as staff at state-owned RBS yesterday cashed in £138m worth of stock handed out as part of bonuses in 2009, the largest one-day sale since its bail-out.
The sell-off helped send RBS shares down four per cent to 38.5p.