17th Sep 2014 05:47
LONDON (Alliance News) - Barclays PLC, HSBC Holdings PLC and Royal Bank of Scotland Group PLC have been named among thirteen banks facing allegations of fraud and a claim for USD1.15 billion in damages in the US over the sale of mortgage bonds during the financial crisis, The Guardian reported on Tuesday.
The accusations have been made in the state of Virginia, with attorney general Mark Herring alleging the banks named in the suit packaged up risky home loans into the bonds before selling them to the Virginia Retirement System as, primarily, top-quality AAA-rated bonds, the paper said.
HSBC last week became the latest bank to settle allegations it made false representations on the sale of mortgage bonds to US mortgage companies Fannie Mae and Freddie Mac, paying USD550 million to settle the allegations with the Federal Housing Finance Agency.
http://www.theguardian.com/business/2014/sep/16/barclays-hsbc-rbs-fraud-us-mortgage-virginia
By Sam Unsted; [email protected]; @SamUAtAlliance
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