A U.S. district court on Friday ordered Nomura Holdings Inc. and the Royal Bank of Scotland to pay a collective $806 million over sales of defective residential mortgage-backed securities in the United States that led to the financial crisis in 2008.
The order follows a ruling Monday by the U.S. District Court for the Southern District of New York that said the two financial institutions "did not correctly describe the mortgage loans" in selling them. "The magnitude of falsity, conservatively measured, is enormous," the court said.
The Japanese and British companies are among more than 10 major financial institutions sued in 2011 by the U.S. Federal Housing Finance Agency over damage inflicted on the government-sponsored enterprises Fannie Mae and Freddie Mac from defective mortgage loan sales.
Nomura said in a statement it will "review the judgment and will consider all options, including appeal." It said the ruling is expected to have an "insignificant impact on the company's consolidated performance."