U.S. agency seeks $1.1 billion as Nomura, RBS face mortgage bond trial

A U.S. housing regulator urged a federal judge on Monday to award it $1.1 billion due to false claims made about “crap” mortgages underlying securities sold by Nomura Holdings Inc (>> Nomura Holdings, Inc.) to Fannie Mae (>> Federal National Mortgage Assctn Fnni Me) and Freddie Mac (>> Federal Home Loan Mortgage Corp) ahead of the 2008 financial crisis.

At the start of a trial in Manhattan federal court, a lawyer for the Federal Housing Finance Agency said misrepresentations by Nomura and Royal Bank of Scotland Group Plc (>> Royal Bank of Scotland Group plc), an underwriter, about loans underlying $2 billion (1.3 billion pounds) in securities exemplified broader misconduct by banks ahead of the crash.

“Nomura and RBS were very willing participants in creating the worst economic crisis since the Great Depression,” Philippe Selendy, a lawyer for the FHFA, said in an opening statement.

Read on.

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