A massive settlement reached by the Royal Bank of Scotland Group plc brings to more than $7 billion the amount the bank has paid in actions related to mortgage-backed securities.
Since 2014, RBS entities have agreed to MBS-related settlements with the state of Connecticut,
Federal Housing Finance Agency, National Credit Union Administration and pension funds.
In all, those settlements have cost the European financial institution in excess of $1.6 billion.
On Wednesday, FHFA announced another settlement with the bank.
According to the regulator, RBS has agreed to pay a whopping $5.5 billion
to settle a federal lawsuit filed on behalf of Fannie Mae and Freddie Mac.
The settlement covers private-label residential MBS purchased by the government-sponsored enterprises from 2005 through 2007.
FHFA said McLean, Virginia-based Freddie will receive $4.525 billion, while $0.975 billion will go to Washington-based Fannie.
“The settlement with RBS represents settlement of the 17th case of those filed by FHFA,” the regulator said in the statement. “FHFA received a favorable verdict after trial in the 18th case and that verdict is currently the subject of an appeal.”
