The government and the American subsidiary of Nomura Holdings Inc. have reached a settlement over allegations the investment banker misled investors about residential mortgage-backed securities.

Nomura Holding America Inc. is accused by the Department of Justice of misleading RMBS investors in 2006 and 2007 about the quality and characteristics of securitized loans.

Nomura is accused of claiming in RMBS marketing materials that its due diligence process was "extensive," "disciplined" and "carefully developed."

Source: Mortgage Daily