R.B.S. to Pay $5.5 Billion to Settle Toxic Mortgage Claims in U.S.
By CHAD BRAYJULY 12, 2017
LONDON — The Royal Bank of Scotland said on Wednesday
that it had agreed to pay $5.5 billion to American authorities to resolve claims related to its underwriting and sale of toxic mortgage securities.
Ewen Stevenson, the bank’s chief financial officer, said in a conference call on Wednesday
that he could not provide an update on talks with the Justice Department, but that he remained hopeful that the inquiry could be resolved this year.
said it continued to cooperate with investigations by the United States Justice Department
and other American regulators into the sale of mortgage-backed securities, which could lead to further settlements or penalties.
“This settlement is a stark reminder of what happened to this bank before the financial crisis,
and the heavy price paid for its pursuit of global ambitions.”
In the fourth quarter, R. B.S.
set aside an additional $3.8 billion for investigations
and litigation related to the sale of residential mortgage-backed securities as its rivals reached settlements with the American authorities.
