Fairfield County Business Journal 101016

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2 | VINYL REVIVAL October 10, 2016 | VOL. 52, No. 41

4 | GUY HELP

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RBS Securities pays $120M to settle probe BY KEVIN ZIMMERMAN kzimmerman@westfairinc.com

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involved with helping people convicted of street crimes and their families reenter society. The organization has some 15 intervention, re-entry, and family and children programs. Services are provided in Bridgeport, Derby, Norwalk, Stamford, New Haven and Norwich and in three prisons in Cheshire and Niantic. Grant’s elevation — he’s served on Family ReEntry’s board of directors since 2012 — marks the first time that a formerly incarcerated white-collar criminal has served as the head of a major re-entry agency. “It’s a tremendous step, and a bold decision on the board’s part,” Grant said.

BS Securities Inc. will pay $120 million to the state of Connecticut to resolve an investigation into its underwriting of residential mortgage-backed securities prior to the 2008 financial crisis. The settlement represents the largest single state settlement in Connecticut’s history. “RBS was one of the key players in the RMBS (residential mortgagebacked securities) business in the lead-up to the financial crisis, underwriting $250 billion in securities that have to date suffered more than $40 billion in losses," state Attorney General George Jepsen said Oct. 3 in a joint statement with state Department of Banking Commissioner Jorge Pérez. “With today's settlement, we are holding RBS accountable under Connecticut law for its behavior that contributed significantly to the 2008 financial crisis.” Headquartered in Stamford, RBS Securities is an investment bank/broker-dealer owned by The Royal Bank of Scotland Group. An RMBS is a type of mortgagebacked investment product that is backed by the mortgage payments of thousands of homeowners. Investors are entitled to the cash flows — the interest and principal payments — from the underlying mortgage loans. Prior to the 2008 financial crisis, such securities were backed by thousands of subprime loans that homeowners could not pay back as their interest rates ballooned and home prices collapsed in the recession. From January 2005 to December 2008, RBS served as the lead underwriter for approximately 250 RMBS

» Fresh start, page 6

» RBS, page 6

RX FOR STRESS

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Otis, a Bernese mountain dog, mingles with nursing home residents at Waveny in New Canaan. His owner, Dana Neuman, runs Healing Hounds in Fairfeld County.

Fresh start BY KEVIN ZIMMERMAN kzimmerman@westfairinc.com

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upport and counseling for whitecollar criminals re-entering the general population is a growing business for Jeff Grant. Founder of Greenwich-based nonprofit

PROGRESSIVE PRISON MINISTRIES HEAD TAKES ON NEW LEADERSHIP POST

Progressive Prison Ministries, Grant was recently named interim executive director of Family ReEntry, a nonprofit with offices in Norwalk, Bridgeport and New Haven. Founded in 1984 as a re-entry support group for men at the Isaiah House in Bridgeport and with a budget of over $4.5 million, Family ReEntry is principally


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