SEC Charges Broker-Dealer with Misleading Investors in Subprime RMBS Offering
The SEC has charged RBS Securities Inc. ("RBSI") with misleading investors in a 2007 subprime residential mortgage-backed security offering.
According to the SEC, RBSI claimed that the loans backing the offering "generally" met the lender's underwriting guidelines; however, according to the SEC, many of the loans should have been excluded from the offering entirely. RBSI agreed to pay over $150 million in settling the matter.