RBS Pays $42M To End Subprime Mortgage Abuse Probe

Law360, New York (October 24, 2012, 2:16 PM EDT) -- A Royal Bank of Scotland Group PLC unit has agreed to pay $42.5 million to end a Nevada investigation into the bank’s purchasing and securitization practices for subprime and adjustable rate mortgages, Nevada Attorney General Catherine Cortez Masto announced Wednesday.

RBS Financial Products Inc. agreed to the settlement to end a nearly two-year probe into potential misrepresentations by lenders whose subprime and ARM loans RBS purchased and securitized between 2004 and 2007, Masto said in a statement. In addition to the financial penalty, the bank will...
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