RBS nears financial crisis settlement with UK, US authorities

One of the last fines for banks associated with the financial crisis appears to close determination.

High-level talks including the U.K. Treasury and U.S. Justice Department recently planned to determine a punishment for Royal Bank of Scotland, in the midst of inquiries concerning the way it sold bonds called residential mortgage-backed securities, as indicated by a Sky News report. RMBS packaged home advances that disintegrated under a flood of defaults, and helped set off the crisis.

The report demonstrates that U.S. officials would like to have the issue settled inside weeks. RBS faces a fine that could surpass $7 billion, or 5 billion British pounds.

A settlement had been postponed because of a DoJ staffing lack after President Donald Trump took office, as indicated by the report.

RBS has $3.3 billion put aside for the settlement, which is one of the last legs in enabling the bank to continue paying shareholders a dividend. Banks in the U.S. furthermore, Europe have paid out more than $150 billion in fines related with the crisis.

RBS officials did not promptly react to a demand for comment. A spokesman at the U.K. Treasury declined comment, while nobody could be come to at the DoJ.

News Reporter

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