New York Attorney General Eric Schneiderman announced a $500 million settlement with Royal Bank of Scotland over the bank’s “deceptive practices and misrepresentations to investors in connection with the packaging, marketing, sale, and issuance of residential mortgage-backed securities (RMBS) leading up to the financial crisis.”
The settlement includes $100 million in cash to New York State and $400 million worth of “consumer relief” for New York homeowners and communities.
“While the financial crisis may be behind us, New Yorkers are still feeling the effects of the housing crash,” said Schneiderman.
“Home values plummeted. Vacant homes consumed neighborhoods. And for many New Yorkers, affordable housing fell out of reach.
“Today’s settlement is another important step in our comprehensive effort to help New Yorkers rebuild their lives and communities.
“I am proud of the extraordinary housing programs these settlements have funded across New York, from Brookhaven to Buffalo – and today’s settlement will fund even more community revitalization initiatives for years to come.”
RBS CEO Ross McEwan said: “Putting our remaining legacy issues behind us is a key part of our strategy.
“Settling these issues is a stark reminder of the heavy price we continue to pay for the global ambitions pursued by the bank in the run up to the crisis.”