Court Rules Nomura, RBS Misled Fannie Mae And Freddie Mac

Nomura and Royal Bank of Scotland were censured by a U.S. judge on Monday for allegedly misleading Fannie Mae and Freddie Mac while selling defective mortgage-backed securities. The court ruling against Nomura and RBS may encourage other banks to settle mortgage-related suits brought by regulators and private investors rather than face the bad publicity and cost of an adverse judgment.

Fannie Mae and Freddie Mac: Court sets damages formula

In her 361-page opinion, U.S. District Judge Denise Cote in Manhattan said Nomura and RBS sold flawed securities to government-owned mortgage companies. After a three-week trial, she...