On December 22, the California Attorney General announced a $125 million settlement with an international bank to resolve allegations of misrepresentations while selling residential mortgage-backed securities to California’s public employee and teacher pension funds. According to Attorney General Xavier Becerra’s office, an investigation found that descriptions of the RMBS “failed to accurately disclose the true characteristics of many of the underlying mortgages” to the state investors. Additionally, the international bank allegedly failed to adequately perform due diligence checks to remove poor quality loans from the investment pool, leading to millions of dollars of loss to the pension funds.