Bank of America and nine other banks have agreed to pay about $63 million to settle claims they misled the state of Virginia into buying faulty residential mortgage-backed securities.
The banking companies were accused of misrepresenting to the Virginia Retirement System the quality of securities they were selling, according to a press release. The banks did not admit or deny wrongdoing as part of the settlement. The lawsuit against the banks was initially filed by Virginia's attorney general.
As part of the settlement's terms, Bank of America's Countrywide Securities and Merrill Lynch units agreed to pay $19.5 million, the largest amount of the defendant banks. Royal Bank of Scotland's RBS Securities agreed to pay the second-largest amount, $10 million.
Other banks that are party to the settlement are Barclays, Morgan Stanley, Deutsche Bank, Citigroup, Goldman Sachs, HSBC, Credit Suisse and UBS.