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Nomura (NMR) to Pay $35M to Settle Residential MBS Fraud
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Nomura Holdings, Inc. (NMR - Free Report) has agreed to pay $35 million as part of non-prosecution agreement with the federal government over criminal fraud relating to the trading of residential mortgage-backed securities (MBS).
The traders at Nomura had been accused of overstating prices of MBS, that was demanded by sellers from 2009 to 2013, and keeping the difference.
Further, the traders had been held responsible for charging extra unearned commissions from their customers by negotiating prices for the bonds that NMR had already purchased.
Nomura will be required to make a payment of around $808,000 as restitution fees to the victims. This was announced by U.S. Attorney, Vanessa Roberts Avery, in Connecticut.
The resolution will have no material financial impact as the entire settlement has been provisioned in prior periods.
In 2019, pursuant to a related civil settlement with U.S. Securities and Exchange Commission, the company had paid around $20.1 million as restitution fees along with a fine of $1.5 million.
Nonetheless, NMR’s acceptance of responsibility, upgrades in compliance procedures and cooperation was recognized by the Department of Justice.
Nomura’s shares have lost 8.8% over the past six months compared with the industry’s decline of 13.4%.
The lawsuit accusing Wells Fargo & Company (WFC - Free Report) of defrauding its shareholders by making commitments to interview diverse job candidates in its hiring process while it actually faked interviews for positions that had already been filled, has been dismissed.
U.S. District Judge, Trina Thompson, stated that shareholders failed to prove the conduct of fake interviews. Moreover, no evidence was found that could prove the chief executive, Charlie Scharf, and senior diversity executives had knowledge about the sham interviews.
UBS Group AG (UBS - Free Report) has arrived at a settlement with the U.S. Department of Justice to pay $1.44 billion as penalty to resolve a long-running civil case. The civil action against UBS was filed in 2018, alleging misconduct with regard to underwriting, issuance and sale of residential mortgage-backed securities that were issued in 2006-2007.
UBS said that the entire settlement has been provisioned in prior periods.
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Nomura (NMR) to Pay $35M to Settle Residential MBS Fraud
Nomura Holdings, Inc. (NMR - Free Report) has agreed to pay $35 million as part of non-prosecution agreement with the federal government over criminal fraud relating to the trading of residential mortgage-backed securities (MBS).
The traders at Nomura had been accused of overstating prices of MBS, that was demanded by sellers from 2009 to 2013, and keeping the difference.
Further, the traders had been held responsible for charging extra unearned commissions from their customers by negotiating prices for the bonds that NMR had already purchased.
Nomura will be required to make a payment of around $808,000 as restitution fees to the victims. This was announced by U.S. Attorney, Vanessa Roberts Avery, in Connecticut.
The resolution will have no material financial impact as the entire settlement has been provisioned in prior periods.
In 2019, pursuant to a related civil settlement with U.S. Securities and Exchange Commission, the company had paid around $20.1 million as restitution fees along with a fine of $1.5 million.
Nonetheless, NMR’s acceptance of responsibility, upgrades in compliance procedures and cooperation was recognized by the Department of Justice.
Nomura’s shares have lost 8.8% over the past six months compared with the industry’s decline of 13.4%.
Image Source: Zacks Investment Research
NMR presently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Financial Misconduct by Other Firms
The lawsuit accusing Wells Fargo & Company (WFC - Free Report) of defrauding its shareholders by making commitments to interview diverse job candidates in its hiring process while it actually faked interviews for positions that had already been filled, has been dismissed.
U.S. District Judge, Trina Thompson, stated that shareholders failed to prove the conduct of fake interviews. Moreover, no evidence was found that could prove the chief executive, Charlie Scharf, and senior diversity executives had knowledge about the sham interviews.
UBS Group AG (UBS - Free Report) has arrived at a settlement with the U.S. Department of Justice to pay $1.44 billion as penalty to resolve a long-running civil case. The civil action against UBS was filed in 2018, alleging misconduct with regard to underwriting, issuance and sale of residential mortgage-backed securities that were issued in 2006-2007.
UBS said that the entire settlement has been provisioned in prior periods.