BOSTON – Royal Bank of Scotland Group Plc’s RBS Financial Products unit will pay $52 million to settle claims it financed, purchased and bundled unfair residential loans, Attorney General Martha Coakley said last week.
More than $40.2 million will be used for principal reduction and relief for more than 700 borrowers and more than $8.9 million will be paid to the state, Coakley said in an emailed statement. “The securitization of subprime loans by investment banks is a major cause of the economic crisis,” Coakley said. “Investment banks profited handsomely from those securitizations at the expense of homeowners.”
The RBS deal, together with previous settlements with Goldman Sachs Group Inc. and Morgan Stanley, brings Massachusetts settlements with investment banks over securitization practices to more than $200 million, according to the statement. •
Join PBN for the best networking event and party of the winter - January 15, 2015 - the Book of Lists Party at the Providence Public Library. Reserve your spot by December 31st and get a holiday gift from PBN!
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.