InfoBytes Blog
International bank settles with Illinois Attorney General for $20 million for alleged RMBS misconduct
On July 3, the Illinois Attorney General announced a settlement with an international bank to resolve allegations of misconduct in the bank’s marketing and sale of residential mortgage-backed securities (RMBS) in the lead-up to the 2008 financial crisis. According to the press release, the bank allegedly failed to disclose accurately the risk of the RMBS investments when selling the securities. Under the terms of the settlement, the bank has agreed to pay $20 million to the state, which will be divided between three state retirement systems. This settlement follows several other RMBS-related actions taken by the Attorney General.
As previously covered in InfoBytes, earlier in March, the bank reached a settlement with the New York Attorney General to resolve similar allegations.