Nomura, RBS must pay $806 million in mortgage bond case: U.S. judge

A U.S. judge on Friday ordered Nomura Holdings Inc (>> Nomura Holdings, Inc.) and Royal Bank of Scotland Group Plc (>> Royal Bank of Scotland Group plc) to pay a collective $806 million for making false statements in selling mortgage-backed securities to Fannie Mae (>> Federal National Mortgage Assctn Fnni Me) and Freddie Mac (>> Federal Home Loan Mortgage Corp).

U.S. District Judge Denise Cote in Manhattan entered the judgment after finding the banks liable on Monday following a non-jury bench trial in a lawsuit by the Federal Housing Finance Agency over securities sold ahead of the 2008 financial crisis.

Under the order, Fannie Mae will receive $26.6 million while Freddie Mac will be paid $779.4 million by the two firms.

Read on.

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