RBS nears financial crisis settlement with US, UK authorities: Sky News
One of the final fines for banks involved in the financial crisis looks to be nearing resolution.
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High-level talks involving the U.K. Treasury and U.S. Justice Department earlier this week aimed to resolve a penalty for Royal Bank of Scotland, amid questions about the way it sold bonds called residential mortgage-backed securities, according to a Sky News report. RMBS bundled home loans that crumbled under a wave of defaults, and helped set off the crisis.
The report indicates that U.S. officials hope to have the matter settled within weeks. RBS faces a fine that could exceed $7 billion, or 5 billion British pounds.
A settlement had been delayed due to a DoJ staffing shortage after President Donald Trump took office, according to the report.
RBS has $3.3 billion set aside for the settlement, which is one of the last legs in allowing the bank to resume paying shareholders a dividend. Banks in the U.S. and Europe have paid out more than $150 billion in fines associated with the crisis.
RBS officials did not immediately respond to a request for comment. A spokesman at the U.K. Treasury declined comment, while no one could be reached at the DoJ.
Read the full SkyNews report here.