SEC Weighing Suit Against RBS Over Mortgage Bonds

Law360, New York (May 6, 2013, 1:55 PM EDT) -- The U.S. Securities and Exchange Commission is considering suing a unit of The Royal Bank of Scotland Group PLC over allegedly faulty due diligence in a 2007 mortgage-backed securities deal, the bank said Friday.

RBS Securities Inc. received a so-called Wells notice on March 28 stating that SEC staff was “considering recommending that the SEC initiate a civil or administrative action” against the bank, it said in a filing with the SEC. The bank has submitted a response to the Wells notice, it said.

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