Royal Bank of Scotland (RBS) is close to agreeing a multi-billion pound fine with US authorities over the mis-selling of mortgage bonds, according to
Royal Bank of Scotland (RBS) is close to agreeing a multi-billion pound fine with US authorities over the mis-selling of mortgage bonds, according to reports.
Discussions are understood to be at an advanced stage between the state-backed lender and the US Federal Housing Finance Agency (FHFA), according to reports by Sky News.
A settlement is likely to leave RBS facing a bill of more than $4.5bn (£3.6bn).
Such an agreement would draw a line under one of RBS’ largest legal challenges and potentially pave the way for the government selling down its stake. A deal is believed to be only a matter of weeks away, Whitehall sources told Sky News.
The fines relate to the mis-selling of the bonds to US state-owned mortgage firms Fannie Mae and Freddie Mac prior to the 2008 financial crisis.
It was in discussions with the US Department of Justice, a process that has been held up US President Donald Trump changing a number of senior officials involved. Such fines are expected to billions of pounds more.
RBS declined to comment.