Nomura, RBS First to Face FHFA in Trial March 13, 2015 486 Views in Daily Dose, Featured, Servicing Share FHFA Nomura Holdings RBS 2015-03-13 Seth Welborn The Federal Housing Finance Agency (FHFA)’s case against two of the world’s largest banks, Nomura Holdings and the Royal Bank of Scotland (RBS), over claims of misrepresenting the quality of mortgage-backed securities to Fannie Mae and Freddie Mac, is scheduled to go to trial next week, according to media reports.The non-jury trial in the U.S. District Court of the Southern District of New York in Manhattan is scheduled to begin on Monday, March 16. If no last-minute settlement is reached, Nomura and RBS would be the first two financial institutions to go to trial out of the 18 lenders FHFA sued in 2011 to recoup U.S. taxpayer costs following the government’s $188 billion bailout of Fannie Mae and Freddie Mac in 2008, after which the government seized control of both Enterprises. The other 16 lenders have paid a combined total of about $24 billion to settle with FHFA, including $9.3 billion paid by Bank of America in March 2014.FHFA is said to be seeking $1 billion in damages over losses the Agency suffered when the sponsor of the mortgage-backed securities, Nomura, and the securities’ underwriter, RBS, did not follow underwriting guidelines on 68 percent of a sample of a bundle of securities backing more than $2 billion worth of mortgages sold to the GSEs prior to the financial crisis of 2008. FHFA alleges that the appraised values of the loans in question were inflated by an average of 11 percent, according to reports. Nomura and RBS have reportedly denied the allegations, claiming they made no misleading statements about the securities.The banks would receive the securities back should they have to pay damages in the case. According to reports, the securities were valued at $480 million earlier this week, which is less than half of the $1 billion in damages FHFA is said to be seeking.Reports surfaced in early January 2015 that FHFA might ask RBS to pay up to the equivalent of $7.7 billion in U.S. dollars to settle a separate mortgage-backed securities case being handled by the U.S. District Court in Connecticut. RBS had reportedly set aside the equivalent of $3 billion in U.S. dollars for a possible settlement to resolve claims that it sold $32 billion worth of faulty mortgage-backed securities to the two GSEs.In June 2014, RBS agreed to pay $99.5 million to settle a separate FHFA suit claiming that the bank sold more than $2 billion worth of faulty mortgage-backed securities to Fannie Mae and Freddie Mac between 2005 and 2007, the years of the “housing bubble” in the United States.
British air passengers have been voted the biggest in-flight drinkers, yet boozy Brits are warming to the idea of alcohol-free flights, according to our latest research.British holidaymakers were voted the biggest drinkers by international cabin crew, beating the Russians into second place.* Over half (54%) of Brits admit to kicking off their holiday with a stiff drink in either the airport or onboard their flight.However, while many enjoy a tipple at 35,000ft, flying dry is becoming a more popular option, with 41% of Brits surveyed saying they would rather book an alcohol-free flight if it were offered by airlines. For almost a quarter (24%) the main motivation for flying dry was to avoid drunken passengers ruining the experience.Unusually, the younger generations are most strongly in favour of banning alcohol on flights. Brits aged 18-24 were revealed as the ban’s biggest supporters, with only 18% claiming to enjoy in-flight drinking, compared with all older age groups. By contrast, holidaymakers from the North East are most strongly against ditching the drink.This comes after recent debate about the future of in-flight alcohol served by commercial airlines, with Russian officials calling for an alcohol ban on all flights to prevent drunken behaviour on board.Although British and Russian travellers might be the biggest on-board drinkers, these results are a clear sign that the popularity of alcohol-free flights is on the rise. It seems that travellers would prefer to forgo their favourite tipple rather than spend several hours sitting next to someone who has had one too many!*Survey conducted by Skyscanner of 700 cabin crew members polled via cabincrew.comReturnOne wayMulti-cityFromAdd nearby airports ToAdd nearby airportsDepart14/08/2019Return21/08/2019Cabin Class & Travellers1 adult, EconomyDirect flights onlySearch flights Map RelatedCredit crunch hit Brits still willing to book flights to the MedCredit crunch hit Brits still willing to book flights to the MedSwine flu does not affect Brits’ travel arrangementsBritish holidaymakers who have booked flights to Europe this summer are refusing to let the swine flu outbreak affect their plansHolidaying Brits more likely to sunbathe than visit cultural attractionsBrits spend more time sunbathing and drinking in bars than holidaymakers from other European countries.