New York City-based Nomura Securities International Inc. has agreed to repay approximately $25 million to customers for its alleged failure to adequately supervise traders in mortgage-backed securities, according to the Securities and Exchange Commission, which reports settling charges filed in two related enforcement actions. Nomura Securities International is the wholly owned subsidiary of Nomura Holdings… Read More >>
Morgan Stanley Pays $150M to Settle MBS Cases
The California Public Employees’ Retirement System (CalPERS) and the California State Teachers Retirement System (CalSTRS) are alleging that Morgan Stanley misled them about the mortgage-backed securities (MBSs) in which they invested in the 2003 to 2007 period. Morgan Stanley officials have denied the allegations “and all claims of wrongdoing, damages and liability whatsoever.” The legal… Read More >>
World Bank Signs Licensing Agreement with SimCorp
World Bank Deployment to Cover Middle and Back Offices SimCorp, which provides investment management products and services to the financial services industry, reports that the World Bank has licensed SimCorp Dimension, the vendor’s investment management system. The agreement was signed in late 2018, per SimCorp. Under the agreement, the World Bank has licensed SimCorp’s “middle… Read More >>
Wells Fargo Settles RMBS Case with Justice Department
The U.S. Justice Department reports that Wells Fargo Bank, N.A., the fourth largest in the U.S. by assets, and several of its affiliates will pay a civil penalty of $2.09 billion, “based on the bank’s alleged origination and sale of residential mortgage loans that it knew contained misstated income information and did not meet the… Read More >>
California Alleges Morgan Stanley Misled Key Pension Funds
The State of California has filed suit against Morgan Stanley & Co., accusing it of knowingly misleading the California Public Employees’ Retirement System (CalPERS) and the California State Teachers’ Retirement System (CalSTRS), enticing the two huge pension funds to buy toxic mortgage-backed securities during the housing bubble that led to the Great Recession. The complaint,… Read More >>
SEC Collects $5.8M from DBRS for Monitoring Woes
U.S. regulator, the SEC has charged credit rating agency DBRS Inc. with misrepresenting its surveillance methodology for ratings of U.S. residential mortgage-backed securities and re-securitized real estate mortgage investment conduits during a three-year period. An SEC investigation found DBRS “misrepresented [that] it would monitor on a monthly basis each of its outstanding ratings of U.S…. Read More >>
Barclays to Settle RMBS Lawsuits for $325 Million
Barclays has reached a $325 million settlement with a U.S. government agency that regulates federal credit unions, bringing to an end a lawsuit against the Barclays Capital investment banking subsidiary over the sale of allegedly faulty residential mortgage-backed securities (RMBS) to corporate credit unions that allegedly failed as a result of the transactions. The agreement… Read More >>
