On Monday, a United States federal judge ruled against Japanese bank Nomura. According to the judge, the bank did not provide true information about its mortgage-backed securities that the bank sold to Uncle Sam.

In the ruling, Judge Denise Cote said, "Nomura had major lapses in due diligence and made material misstatements on offering documents for the securities, which were made up of home loans made to people who weren't able to make good on their mortgages".

While ruling with the independent federal agency Federal Housing Finance Authority (FHFA), Judge Cote said that the level of falsity was enormous. According to reports, Cote has yet to decide what Nomura along with the Royal Bank of Scotland will owe to FHFA. There are reports that the agency has decided that the cost will be about $1 billion and in addition, bank will have to take back its mortgage-backed securities.

As per the reports, the decision by Cote is a rebuke of Koji Nagai, who is Japanese business executive. He also serves as the Chief Executive Officer of Nomura Holdings. As per some bank insiders, Nagai has tried to clear the bank's name of any unlawful activity by going to trial, which lasted for about a month. During the trial, Nomura's lawyers said that offering documents did not need any honestly held view as they were just opinions. According to the lawyers, the securities that were sold by the bank as good as the bank said they were.

In a statement, Andrew Squire, a spokesman for Japanese bank Nomura, said that the bank has decided to review the ruling by the US federal judge. According to Squire, the bank doesn't agree with the decision by the court and intends to appeal the decision.