Feds Sue Banks Over Mortgage-Backed Securities

The National Credit Union Administration has filed a lawsuit against J.P. Morgan and the Royal Bank of Scotland regarding their underwriting of residential mortgage-backed securities. The NCUA alleges that the banks' offering documents for the securities contained untrue statements of material fact or failed to state material facts, and misrepresented the securities as posing less of a risk than they actually did. As a result, the NCUA argues, several credit unions failed and required a bailout by the NCUA. Feds Sue J.P. Morgan Over Mortgage Backed Securities

Feds Sue RBS Over Mortgage-Backed Securities