The last holdout in a swarm of lawsuits filed in 2011 against underwriters and issuers of mortgage-backed securities has been resolved by the country’s high court.
In September 2011, the Federal Housing Finance Agency filed several lawsuits on behalf of Fannie Mae and Freddie Mac against firms the to companies acquired MBS from.
Among the defendants in the cases were Nomura Securities and the Royal Bank of Scotland.
Unlike many of the defendants who wound up settling with FHFA, Nomura and RBS fought the regulator.
After the U.S. District Court for the Southern District of New York ruled the FHFA must be paid $839 million, an appeal was filed in with the U.S. Court of Appeals for the Second Circuit.
In September 2017, the appeals court ruled in favor of FHFA and affirmed the lower court’s judgment.
The case was then presented to the Supreme Court.
On Monday, the Supreme Court revealed that it will not hear the case.
FHFA has reportedly reached settlements with defendants in the other cases.
