(Adds details on case, other settlements, byline)
By Jonathan Stempel
June 19 Royal Bank of Scotland Group Plc
agreed on Thursday to pay $99.5 million to resolve a U.S.
regulator's claims against the bank over Freddie Mac's
purchase between 2005 and 2007 of mortgage-backed securities
that later went sour.
The Federal Housing Finance Agency said the accord related
to litigation also naming Ally Financial Inc, which previously
settled, as a defendant.
The FHFA said it has now reached 15 settlements, totaling
about $16.1 billion, stemming from lawsuits it filed in 2011 to
recoup losses on roughly $200 billion of mortgage-backed
securities purchased by Freddie Mac and Fannie Mae.
The FHFA oversees both government-controlled mortgage
companies as conservator.
It still has a case against RBS in federal court in
Connecticut, which it has said concerned about $30.4 billion of
securities, and cases in federal court in Manhattan against
Goldman Sachs Group Inc, HSBC Holdings Plc and
Nomura Holdings Inc.
In a statement, RBS said the settled case concerned more
than $2 billion of securities, It said it previously set aside
enough money to cover the settlement amount. RBS said that other
mortgage securities cases may be resolved differently.
Bank of America Corp and its Countrywide and Merrill
Lynch units have reached three of the 15 FHFA settlements. Those
three settlements total $5.83 billion, a larger amount than at
any other bank.
The FHFA became the conservator for Freddie Mac and Fannie
Mae after federal regulators seized those companies in September
The case is FHFA v. Ally Financial Inc et al, U.S. District
Court, Southern District of New York, No. 11-07010.
(Reporting by Jonathan Stempel in New York; Editing by
Marguerita Choy and Leslie Adler)