A number of big banks have settled with one state to settle allegations of misrepresenting mortgage securities
A number of big banks have settled with one state to settle allegations of misrepresenting mortgage securities.
The Commonwealth of Virginia recovered over $63 million from eleven banks in the settlement following allegations that the banks misled the state and the state’s retirement system into purchasing misrepresented mortgage –backed securities.
"This case breaks new ground for Virginia, recovering millions for Virginia taxpayers from banks that we alleged had misrepresented the products they sold to the Commonwealth," Attorney General Mark Herring said. "Today's settlement, which represents significant relief to VRS, taxpayers and pensioners of the Commonwealth, is one of the largest of its kind in the nation."
It was the largest non-healthcare-related recovery, according to a statement from Herring’s office.
The case was originally brought forth by a relator, Integra REC, on behalf of the state. It asserted both common law and statutory causes of action.
“Attorney General Herring intervened and brought the case on behalf of the Commonwealth of Virginia and the Virginia Retirement System,” the office said. “The Commonwealth sought to recover $383 million in alleged damages, including $250.66 million of realized losses.”
The settlement includes:
The Commonwealth of Virginia recovered over $63 million from eleven banks in the settlement following allegations that the banks misled the state and the state’s retirement system into purchasing misrepresented mortgage –backed securities.
"This case breaks new ground for Virginia, recovering millions for Virginia taxpayers from banks that we alleged had misrepresented the products they sold to the Commonwealth," Attorney General Mark Herring said. "Today's settlement, which represents significant relief to VRS, taxpayers and pensioners of the Commonwealth, is one of the largest of its kind in the nation."
It was the largest non-healthcare-related recovery, according to a statement from Herring’s office.
The case was originally brought forth by a relator, Integra REC, on behalf of the state. It asserted both common law and statutory causes of action.
“Attorney General Herring intervened and brought the case on behalf of the Commonwealth of Virginia and the Virginia Retirement System,” the office said. “The Commonwealth sought to recover $383 million in alleged damages, including $250.66 million of realized losses.”
The settlement includes:
- Countrywide Securities Corporation and Merrill Lynch, Pierce, Fenner & Smith, Inc. (combined): $19,500,000.00 in total
- RBS Securities Inc.: $10,000,000.00
- Barclays Capital Inc.: $9,000,000.00
- Morgan Stanley & Co. LLC: $6,900,000.00
- Deutsche Bank Securities Inc.: $5,621,897.00
- Citigroup Global Markets Inc.: $4,750,000.00
- Goldman, Sachs & Co.: $2,900,000.00
- HSBC Securities (USA) Inc.: $2,500,000.00
- Credit Suisse Securities (USA) LLC: $1,200,000.00
- UBS Securities LLC: $850,000.00
