US regulator puts two banks on trial
Lawyers for the regulator will face off with attorneys of Nomura Holdings Inc and Royal Bank of Scotland Group Plc in a non-jury trial in Manhattan federal court, one of the few cases spilling out of the financial crisis by the US government to reach trial.
Barring a last-minute settlement, the trial would be the first to result from 18 lawsuits filed in 2011 by the Federal Housing Finance Agency (FHFA) to recover losses on some $200bn in mortgage-backed securities that various banks sold Fannie Mae and Freddie Mac.