Shares in RBS fell by over 2% this morning as it emerged the bank could be hit by a $13bn bill relating to the way it dealt in mortgage bonds before the credit crisis, a US court has warned.
The case, which is being brought by the Federal Housing Finance Agency (FHFA) and is yet to go to court, concerns the way the bank sold mortgage bonds to government-backed mortgage firms, including Fannie Mae and Freddie Mac. FHFA alleges that RBS seriously overstated the ability of borrowers to pay back $32bn worth of underlying loans when it sold mortgage-backed securities to the lenders between 2005 and 2007. The $13bn figure, first reported by the Financial Times, is an early estimate but is much higher than analysts anticipated. It is based on an earlier ruling in the southern di...
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