RBS to pay US$125m to settle California mortgage bond claims

Boston

ROYAL Bank of Scotland Group plc (RBS) will pay US$125 million to resolve claims that it made misrepresentations while selling mortgage-backed securities to two large California pension funds, the state's attorney-general has announced.

The settlement announced last Friday by California attorney-general Xavier Becerra was the latest by RBS aimed at resolving claims stemming from its sale of mortgage-backed securities, which were at the heart of the 2008 financial crisis.