Japanese banking major Nomura and British banking giant RBS have been asked by a US district court to pay $806m collectively for making false statements in selling mortgage-backed securities to Fannie Mae and Freddie Mac.
The court ruled said that the banks must pay the full amount requested by the Federal Housing Finance Agency (FHFA), which found them liable in a lawsuit brought by the agency.
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As per the ruling, Fannie Mae will get $26.6m while Freddie Mac will be paid $779.4m by the two banks.
Nomura spokesman Jonathan Hodgkinson, in a statement, said that losses by Fannie Mae and Freddie Mac resulted from an unprecedented decline in home prices.
"Nomura takes this situation very seriously and strongly disagrees with the outcome of the case," Hodgkinson said. "Nomura will continue to vigorously defend its interest in this matter and looks forward to taking its case to the U.S. Court of Appeals."
However, RBS representatives didn’t immediately comment on the judgment.
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