The US National Credit Union Administration (NCUA) [official website] said [press release] Wednesday that the Royal Bank of Scotland Group (RBS) [corporate website] will pay $1.1 billion after it allegedly solid toxic mortgaged-backed securities. The RBS is currently preparing [Reuters report] to settle a number of other US cases dealing with mis-selling similar bonds. This comes after the 2008 financial crisis [Britannica backgrounder], in which the NCUA claim such firms “contributed to the corporate crisis.” Under this settlement, the RBS does not admit fault as they currently are still facing 13 other cases for similar claims. The NCUA said that it continues to litigate against other bands for their sale of bad mortgage-backed securities to credit unions.
Major banking firms have faced numerous lawsuits regarding their business practices. In December 2013 the NCUA brought a suit [JURIST report] against JPMorgan for similar RMBS products sold by Bear Stearns, which was also subsequently purchased by JPMorgan. In July 2012 JPMorgan agreed to a $100 million settlement [JURIST report] in a suit brought by customers claiming unreasonable fees and a three percent increase on monthly minimum payments by credit card holders. In early June of that year the firm was granted [JURIST report] permission to pay $44.6 million to resolve allegations of fraudulent bidding practices for state and local government investment securities at taxpayers’ expense. The settlement followed JPMorgan’s agreement [JURIST report] with the US Department of Justice to pay $228 million to federal and state authorities. One month earlier JPMorgan again settled [JURIST report] at $153.6 million for fraud charges brought by the SEC for misleading investors during the housing crises. In July 2010 Goldman Sachs agreed to a $550 million settlement [JURIST report] with the SEC to resolve similar charges.