RBS share price: Group reaches US mortgage bonds settlement

Royal Bank of Scotland Group (LON:RBS) has reached a $5.5-billion settlement with US authorities over mis-sold mortgage bonds in the run-up to the fin

RBS share price: Group reaches US mortgage bonds settlement

Royal Bank of Scotland Group (LON:RBS) has reached a $5.5-billion settlement with US authorities over mis-sold mortgage bonds in the run-up to the financial crisis, the blue-chip company has said. The deal comes as the FTSE 100 lender looks to draw a line under its turbulent past.

RBS’ share price has given up some of its earlier gains in afternoon trade and was standing 0.39 percent higher at 257.50p as of 14:27 BST, underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 1.11 percent higher at 7,411.05 points. The group’s shares have added more than 41 percent to their value over the past year, and are up by nearly 15 percent in the year-to-date.

RBS announced in a statement today that it had reached a settlement with the Federal Housing Finance Agency (FHFA) to resolve claims related to the lender’s issuance and underwriting of approximately $32 billion (£25 billion) of residential mortgage-backed securities in the US. Under the settlement, RBS will pay the US regulator $5.5 billion, of which $754 million will be reimbursed to the FTSE 100 group under indemnification agreements with third parties.

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