NY POST-
Big banks have cut yet another settlement from the mortgage crisis at pennies on the dollar.
Wells Fargo, Royal Bank of Scotland and Deutsche Bank have reached a $165 million class-action settlement of investor claims over their underwriting for the now-bankrupt subprime lender NovaStar Mortgage.
The truce resolves claims that offering materials prepared by the banks misled investors into believing that loans underlying roughly $7.55 billion of NovaStar mortgage-backed securities they bought were properly underwritten, and were safe.
[NY POST]
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The recovery was 3.1 cents per dollar of face value.
Doesn’t that also mean 96.9 cents per dollar of face value WEREN’T recovered?
Steven Toll, a lawyer for investors led by the New Jersey Carpenters Health Fund, said “This is a significant recovery.”
Good thing Mr. Toll is a lawyer and not a financial advisor.