NEW YORKâRoyal Bank of Scotland Group PLC has agreed to pay $129.6 million to NCUA to resolve claims that it sold toxic mortgage-backed securities to now-failed corporate CUs.
The settlement results from a 2013 lawsuit NCUA filed against RBS for investments that were sold to then Southwest Corporate FCU and Members United Corporate CU.
Prior to the most recent settlement, NCUA had recovered more than $1.7 billion from other banks as the result of similar litigation, including settlements with JPMorgan Chase, Bank of America, Citigroup and HSBC Holdings.
In the suit filed against RBS NCUA claimed it had ignored underwriting guidelines for the securities, which were rated triple-A at the time they were purchased by the credit unions for a total of more than $300 million in 2006 and 2007.