Tag Archives: RBS

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.

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Former RBS trader pleads guilty in U.S. to cheating customers

(Reuters) – A bond trader pleaded guilty on Wednesday to conspiring to defraud Royal Bank of Scotland Group Plc (>> Royal Bank of Scotland Group plc) customers by lying about the prices of bond transactions he handled for them in an effort to boost the bank’s profit.

Matthew Katke, 34, of New York, pleaded guilty to one count of conspiracy to commit securities fraud and will cooperate with prosecutors, U.S. Attorney Deirdre Daly in Connecticut said.

The plea came one year after a federal jury in New Haven, Connecticut in a similar case convicted former Jefferies Group Inc managing director Jesse Litvak for cheating his customers on prices of mortgage-backed securities.

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SocGen Enters CMBS Market in U.S. by Hiring Team From RBS

(Bloomberg) — Societe Generale SA is entering the U.S. commercial-mortgage-backed securities market and has hired a team of more than 10 people from Royal Bank of Scotland Group Plc for the effort.

Wayne Potters, who most recently led RBS’s commercial real-estate group, will head the CMBS group for the French bank, according to an e-mailed statement. Societe Generale said it also hired Adam Ansaldi, who previously oversaw the CMBS distribution and securitization at RBS.

The bank is seeking “to develop asset-backed product capabilities that will take advantage of a trend towards increased securitization to finance the economy at a time when many banks’ capacity to hold assets on their balance sheets is limited,” according to the statement.

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RBS Admits Mis-Selling Taxpayer-Backed Scheme

Royal Bank of Scotland (RBS) is contacting 1,800 small business customers who are believed to have suffered under the latest mis-selling scandal to hit the bank.

RBS said the issue came to light following a review of customer files following complaints to the British Business Bank, the Government body overseeing the Enterprise Finance Guarantee (EFG).

The scheme, set up in 2009, has seen RBS loan more than £900m to 9,000 small firms who would otherwise have found it difficult to access credit.

RBS said: “This exercise identified a number of instances where we have not properly explained to customers how borrower and guarantor liabilities work under the EFG scheme.

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Banks Rejected by U.S. High Court on Mortgage Securities Suits

The U.S. Supreme Court dealt a blow to Royal Bank of Scotland Group Plc and Nomura Holdings Inc. (8604), refusing to derail federal government lawsuits that seek billions of dollars over the sale of risky mortgage-backed securities.

The justices today turned away an appeal by four banks, including units of RBS and Nomura, in a case stemming from the collapse of two credit unions that owned more than $1.7 billion in those securities.

High court review might have helped RBS fight off a separate suit by the Federal Housing Finance Agency over $32 billion in mortgage-backed securities. RBS now is likely to settle that case for at least $1.7 billion, according to Elliott Stein and Alison Williams, analysts with Bloomberg Intelligence. Nomura may settle a smaller FHFA lawsuit against it as well.

At issue was how much time federal agencies have to file lawsuits. The high court appeal centered on a provision, known as the Extender Statute, enacted as part of the 1989 law that bailed out the savings and loan industry. The Extender Statute gave government agencies longer to press at least some cases.

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Royal Bank of Scotland : RBS and NatWest block over £1 million in payday loan broker fees

From today, according to new rules set by the FCA, payday loan brokers must make clear the fees they charge and that they are not acting as a lender – or be banned from charging customers.

RBS and NatWest revealed in November that they were receiving in excess of 600 calls each day from customers caught  out by unclear terms and conditions of payday loan brokers.

These T&C’s allowed pay day loan brokers to share the information provided to them (including bank account details) to other companies who often then charged customers for making an application. Because these companies never explicitly said how customers’ information would be shared  customers did not know  they would be liable for charges until they were taken from their account.

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RBS Suspend Bonuses Of 18 FX-Rigging Traders

As Bloomberg reports,

Royal Bank of Scotland suspended bonuses of 18 traders as part of a review of its foreign-exchange business in the wake of a $634 million fine.

The bank is reviewing the conduct of more than 50 current and former traders who worked at the investment bank, it said in a statement today. Six employees face disciplinary action, with three of them suspended pending investigations.

A former RBS trader was arrested on Dec. 19 in relation to the U.K. Serious Fraud Office’s investigation into currency rigging, according to a person with knowledge of the situation, who asked not to be identified because the details are private.

“We are undertaking a robust and thorough review into the actions of the traders that caused this wrongdoing and the management that oversaw it,” Jon Pain, RBS’s head of conduct and regulatory affairs, said in the statement. “No further bonus payments will be made or unvested bonus awards released to those in scope of the review until it has concluded.”

The SFO confirmed it had last week arrested a man in Billericay, a town in Essex, east of London. The agency declined to comment on his identity or employment.

RBS said that given the “complex” nature of the investigations, it will provide a further update when the review is complete, probably in the first quarter.

RBS Investigates Over 50 Staff In Forex Probe

Royal Bank of Scotland (RBS) says it is investigating the conduct of more than 50 past and present staff and suspended bonuses for 18 people as part of its forex scandal inquiry.

In an update today on the accountability review, initiated after it was among five banks fined a total of £2.6bn by regulators last month, RBS said six senior employees had been placed in a disciplinary process.

Three of those members of staff were currently away from their desks, pending continuing investigations, RBS said.

The bank was handed fines totalling £400m in November after it settled separate cases with US regulators and the City watchdog, the Financial Conduct Authority.

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Two greedy RBS bankers who used their jobs to run £3million property fraud escape jail because judge says THEY ‘have suffered’

  • Andrew Ratnage, 50, and his boss Raymond Pask, 54, guilty of scam
  • Pair set up fake companies and used relatives’ names to get mortgages 
  • Bankers borrowed £3m and bought five homes in London, Kent and Essex 
  • All the cash came from their own bank NatWest, which is owned by RBS 
  • Judge spared them jail because they ‘suffered’ and were ’embarrassed’ 

Two ‘greedy’ Royal Bank of Scotland bankers who masterminded a £3million property fraud were spared jail after a judge decided they had already ‘suffered’ enough.

Andrew Ratnage, 50, and his boss Raymond Pask, 54, were both earning more than £100,000-a- year but wanted to make more money using a mortgage scam.

Together they set up a series of fake companies in the name of Pask’s family and then made applications for loans to ‘tart’ up homes and sell them at a profit.

The bankers, who were based at NatWest’s office in Romford, Essex, a bank owned by RBS, then fraudulently borrowed just under £3million over five years

Read more: http://www.dailymail.co.uk/news/article-2851703/Two-greedy-RBS-bankers-used-jobs-run-3million-property-fraud-escape-jail-judge-says-suffered.html#ixzz3KQpilXHa

Ex-RBS Exec To Run Subprime Mortgage Group Kensington

A former head of one of Britain’s emerging ‘challenger banks’ is to take the helm of Kensington, the sub-prime mortgage lender, when it finalises a takeover by two Wall Street buyout giants.

Sky News understands that Ian Henderson, the former chief executive of Shawbrook, is to be installed in the same role at Kensington following its takeover by divisions of Blackstone and TPG.

The deal is expected to be announced to the London stock exchange on Tuesday morning, according to insiders.

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