Nomura to Pay $25 Million Over Bond Traders' Lies
- Firm failed to supervise CMBS and RMBS traders, SEC Says
- SEC has focused on opaque mortgage bond market since crisis
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A Nomura Holdings Inc. unit will repay customers about $25 million to settle U.S. regulators’ allegations that it failed to supervise traders who made false statements in negotiating sales of mortgage securities.
The New York unit didn’t adequately monitor traders who lied to clients about the prices the firm paid for bonds and the amount of profits the traders would receive, the Securities and Exchange Commission said in a Monday statement. In some cases, the traders even misled customers about who owned the bonds, pretending that they were negotiating with a third party when, in fact, Nomura already had possession of the assets.