Whistleblower Caught Between Agencies Loses Bid for Award

A former manager at the Royal Bank of Scotland Group PLC who submitted a tip to the SEC about the bank’s pricing of its residential mortgage-backed securities isn’t entitled to a whistleblower award on payments of more than $10 billion to other agencies, the Second Circuit ruled Thursday.

The Department of Justice and the Federal Housing Finance Agency relied on information and documents that Victor Hong provided, but their settlements with the bank weren’t the type of “actions” eligible for whistleblower awards under the Securities Exchange Act, Judge Susan L. Carney said for the court.

Further, the Securities and Exchange ...