WASHINGTON—Acting as receiver for five failed banks, the FDIC reported it has reached a $190-million settlement of certain residential mortgage-backed securities (RMBS) claims with Barclays Capital, BNP Paribas Securities, Credit Suisse Securities (USA), Deutsche Bank Securities, Edward D. Jones & Co., Goldman Sachs, RBS Securities and UBS Securities.
The FDIC said the settlement resolves federal and state securities law claims based on misrepresentations in the offering documents for 21 Countrywide RMBS purchased by the five failed banks. From November 2011 through August 2012, the FDIC as receiver for the five failed banks filed six lawsuits for violations of federal and state securities laws in connection with the sale of the 21 RMBS to the failed banks. The FDIC has filed a total of 19 RMBS lawsuits on behalf of eight failed institutions seeking damages for violations of federal and state securities laws.
According to the FDIC, the settlement funds will be distributed among five failed bank receiverships: Colonial Bank of Montgomery, Ala., which failed on August 14, 2009; Franklin Bank, S.S.B. of Houston, which failed on Nov. 7, 2008; Guaranty Bank of Austin, Texas, which failed on August 21, 2009; Security Savings Bank of Henderson, Nev., which failed on Feb. 27, 2009; and Strategic Capital Bank of Champaign, Ill., which failed on May 22, 2009.