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Royal Bank of Scotland to pay $150 million for misleading investors
Royal Bank of Scotland to pay $150 million for misleading investors

The Royal Bank of Scotland has agreed to pay more than $150 million to the Securities and Exchange Commission to resolve allegations it deceived investors in a 2007 mortgage-backed security offering. The bank was accused of describing the mortgages as good quality, even though 30% of them fell far short of underwriting guidelines and should not have been used to back an investment offering, the SEC said in a lawsuit against the bank. Stamford, Conn.-based RBS, then known as Greenwich Capital Markets, reviewed a very small portion of the loans before offering the investment, the SEC said in a complaint filed in federal court in Connecticut. The bank was paid $4.4 million for...

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