Illinois Settles With Scotland Bank Over Mortgage Securities
SPRINGFIELD (AP) -- Illinois has reached a $20 million settlement with the Royal Bank of Scotland resulting from the bank's marketing and sale of mortgage-backed securities a decade ago.
Attorney General Lisa Madigan said in a statement that the settlement resolves her investigation into the bank's alleged failure to disclose the true risk of its investments.
Proceeds of the settlement will be distributed among the Teachers Retirement System, the State Universities Retirement System, and the Illinois State Board of Investment, which oversees the State Employees' Retirement System.
A message requesting comment left with the Royal Bank of Scotland in Edinburgh was not returned.
Madigan says that her office has recovered over $475 million for Illinois pension systems as a result of pursuing "fraudulent conduct in the mortgage-backed securities market."
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