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Sub-prime mortage bond sales: RBS to pay $5.5 bn fine to US shareholders

Bank has been trying to resolve its legal cases to enable the UK govt to sell over 70% of its stake

Reuters  |  London/New York 

Royal Bank of Scotland will pay $5.5 billion to settle one of two major US investigations into allegations it mis-sold mortgage-backed bonds that it needs to resolve before the British government can sell its shares. The Edinburgh-based bank on said on Wednesday it agreed to settle the lawsuit with the US Federal Housing Finance Agency (FHFA) that accused it of mis-selling $32 billion of mortgage-backed securities before the global financial crisis. Analysts had previously estimated RBS would have to pay between $3.5 to $5 billion to settle the case. "It is never a great ...

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First Published: Wed, July 12 2017. 22:47 IST