Banks Pay $11.5M To Settle Risky Mortgage Bond Class Action

Law360, New York (December 10, 2012, 2:54 PM EST) -- A group of financial institutions — including Credit Suisse Securities (USA) LLC, RBS Securities Inc. and Greenwich Capital Acceptance Inc. — agreed to pay $11.25 million in New Mexico federal court on Friday to settle a securities class action alleging they misled investors about $5 billion in risky mortgage bonds issued by now-defunct Thornburg Mortgages Inc.

The settlement ends allegations claiming the institutions prepared and issued false and misleading registration statements, prospectuses and prospectus supplements in connection with the sale of certain mortgage loan pass-through certificates...
To view the full article, register now.