Truist Financial says it has reached a settlement with US regulators

Truist International, the largest financial services provider in the US, said on Monday that it has settled a civil lawsuit brought by the Securities and Exchange Commission (SEC) alleging it was responsible for the financial and credit problems that plagued it for years.

The settlement, in which the SEC accused Truist of deceiving customers and failing to disclose serious financial problems, comes as the agency is preparing to launch an investigation into whether Truist engaged in fraudulent activity in the run-up to the 2008 financial crisis.

According to Truist, it will now pay a $7.6 million fine.

The SEC said in a filing on Monday it would seek to recover $1.5 billion in damages and an additional $2 billion in disgorgement from Truist.

Truist did not comment on the settlement.

The settlement comes after months of scrutiny by the SEC and others over the role Truist played in the financial crisis and the subsequent crisis in Cyprus.

In December, the agency launched a criminal probe into whether the company misled investors about the risks posed by the debt crisis.

Truis’ financial advisers are currently barred from selling or offering financial products or services to investors because they were involved in the collapse.

As part of the settlement, Truist will pay a penalty of $7,600 per person who sold or offered financial products, $1,400 per broker or trader who sold financial products to clients and $1 million per broker and trader who made a financial decision that included a recommendation to buy or sell.

Truck’s lawyers said in an email to Reuters that the settlement “is an important step toward the resolution of these allegations”.

The SEC has previously launched a probe into Truist and the financial industry as a whole.