Royal & SunAlliance (R&SA) has announced a settlement between...
Royal & Sun Alliance (R&SA) has announced a settlement between a US subsidiary and a US bank over litigation growing out of the demise of Student Finance Corp.
R&SA said the agreement was between R&SA subsidiary , Royal Indemnity, and Pittsburgh-based PNC Bank.
"As a result," R&SA said, "PNC Bank has agreed to discontinue its part of the legal action."
The agreement reduces the possible summary judgment against Royal Indemnity by $129m.
"The settlement, the terms of which are confidential, will have no impact on the group's financial results," a statement said.
The collapse of Student Finance Corp sparked lawsuits against Royal Indemnity from three banks: PNC, Wells Fargo and Wilmington Trust.
The banks alleged that the finance corporation, which offered student loans, obtained financing fraudulently by listing non-performing loans as assets.
Royal Indemnity had provided Student Finance with business liability cover.
