A penalty included in a settlement between the Department of Justice and The Royal Bank of Scotland Group plc is reportedly largest of its kind ever for the department.
Between 2005 and 2008, RBS was involved in the underwriting and issuance of residential mortgage-backed securities. The business earned the bank “hundreds of millions of dollars,” according to the Justice Department.
But RBS is accused by the government of misleading investors by not disclosing systemic problems with originators’ underwriting and providing them with inaccurate data.
Source: Mortgage Daily