The Federal Deposit Insurance Corp. has reached a $190 million settlement with eight large financial institutions over residential mortgage-backed securities claims as the receiver of five banks that failed during the crisis.
The settlement, announced Thursday, involved the securities arms of Barclays, BNP Paribas, Credit Suisse, Deutsche Bank, Goldman Sachs, Royal Bank of Scotland and UBS, as well as Edward Jones.
In six lawsuits filed between 2011 and 2012, the FDIC had accused the companies of making misrepresentations in the sale of 21 Countrywide RMBS to five banks that had been placed under its receivership. The agency has filed RMBS-related lawsuits for a total eight failed banks.
The agency said it would distribute the $190 million settlement funds among the five failed banks, which were Colonial Bank in Montgomery, Ala.; Franklin Bank in Houston; Guaranty Bank in Austin, Texas; Security Savings Bank in Henderson, Nev.; and Strategic Capital Bank in Champaign, Ill.
