Eight Firms Settle RMBS Fraud Claims with FDIC

first_img June 2, 2016 3,098 Views Servicers Navigate the Post-Pandemic World 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Related Articles Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago FDIC Residential Mortgage-backed securities RMBS Settlements 2016-06-02 Brian Honea Previous: Homeownership: Is the Opportunity There? Next: Plaintiffs Score a Victory in GSE Profit Sweep Suits in Daily Dose, Featured, Government, News The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Tagged with: FDIC Residential Mortgage-backed securities RMBS Settlementscenter_img Eight financial firms have settled for a combined total of $190 million with the Federal Deposit Insurance Corporation (FDIC) over claims of misrepresenting the quality of certain residential mortgage-backed securities to five failed FDIC-insured banks, according to an announcement from the FDIC on Thursday.The FDIC, as a receiver for the five failed banks, filed six lawsuits from November 2011 to August 2012 claiming that the eight firms were in violation of federal and state securities laws regarding the sales of 21 Countrywide RMBS purchased by the five failed banks. In the suits, the FDIC claims there were misrepresentations in the offering documents for the 21 securities.The eight firms involved in the settlement are, alphabetically: Barclays Capital Inc.; BNP Paribas Securities Corporation; Credit Suisse Securities (USA) LLC; Deutsche Bank Securities Inc.; Edward D. Jones & Co., L.P.; Goldman, Sachs & Co; Royal Bank of Scotland (RBS) Securities Inc.; and UBS Securities LLC. The five banks in receivership that will receive the settlement funds are: Colonial Bank of Montgomery, Alabama; Franklin Bank, S.S.B. of Houston, Texas; Guaranty Bank of Austin, Texas; Security Savings Bank of Henderson, Nevada; and Strategic Capital Bank of Champaign, Illinois. Four out of the five banks failed in 2009; the only one that did not was Franklin Bank, which failed in November 2008.With these six lawsuits, the FDIC has filed a total of 19 RMBS lawsuits on behalf of eight institutions, seeking damages for violations of federal and state securities laws, according to the FDIC. The last RMBS settlement for the FDIC prior to Thursday occurred in February 2016, when Morgan Stanley agreed to pay $62.95 million to settle four lawsuits which alleged that the investment banking firm sold toxic RMBS to three FDIC-insured banks that later failed, including Colonial Bank of Montgomery, Alabama.In August 2015, the FDIC filed a lawsuit accusing Bank of New York Mellon of breaching its duties as bond trustee for $2.06 billion worth of RMBS purchased by Guaranty Bank of Austin, Texas. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago About Author: Brian Honea Data Provider Black Knight to Acquire Top of Mind 2 days ago Home / Daily Dose / Eight Firms Settle RMBS Fraud Claims with FDIC  Print This Post The Best Markets For Residential Property Investors 2 days ago Sign up for DS News Daily Eight Firms Settle RMBS Fraud Claims with FDIC Share Save Subscribelast_img read more