RBS Agrees For $129.6 Mln Mortgage Securities Settlement With U.S. Regulator

(RTTNews) - British lender Royal Bank of Scotland Group PLC (RBS, RBS.L) has agreed to pay $129.6 million to settle a U.S. regulator's claims that the company sold toxic mortgage-backed securities to now-defunct U.S. credit unions, according to a court filing on Tuesday.

In 2013, the National Credit Union Administration or NCUA, which regulates and supervises federal credit unions, filed a federal lawsuit in New York on behalf of two defunct credit unions. It sued RBS and eight other banks for misrepresenting the real value of mortgage-backed securities they sold.

In the RBS case, NCUA claimed the bank distorted the quality of mortgage loans backing securities bought by the credit unions in the run up to the financial crisis.

NCUA has previously recovered more than $1.7 billion from several banks, including JPMorgan Chase & Co that agreed to pay $1.4 billion in November 2013.