RBS agrees $4.9bn to settle United States subprime case

RBS agrees $4.9bn to settle United States subprime case

Royal Bank of Scotland has agreed a £3.6billion penalty to end an investigation into its actions in the run up to the 2008 financial crisis. But Mr McEwan called the settlement a "milestone moment" for the bank.

The settlement could pave the way for the British government to begin selling its stake in RBS again, which now amounts to 71 per cent of the business. Late on Wednesday it reached a $4.9 billion settlement in principle with US prosecutors over crisis-era mortgage bond sales, one of the last banks to do so.

"The number is a firm number", Stevenson said.

RBS said 3.46 billion U.S. dollars (£2.5 billion) of the proposed civil settlement will be covered by existing provisions and the bank will take a 1.44 billion USA dollar (£1.1 billion) hit in its second quarter results.

The latest settlement follows a 5.5 billion U.S. dollars (£4.1 billion) United States penalty agreed with the Federal Housing Finance Agency last July.

That suit ended on March 29, when Barclays reached an agreement with the Trump Justice Department to pay the same $2 billion it had offered the prior administration. Incidentally, the settlement is deemed to pave the way ahead for the long-awaited return of cash to United Kingdom tax payers - the ones who bankrolled its survival post the 2008 financial crisis.

It narrowly avoided insolvency in 2008 after the government agreed a 45 billion pound ($61 billion) bailout, just six months after it had raised 12 billion pounds of cash from shareholders.

More news: NIS increases airport screenings to prevent Ebola outbreak
More news: WWE Planning Huge Singles Push For Big E?
More news: Britain condemns Iranian attack on Israel

The fine had been a big obstacle to the government's plan, laid out in November, to begin reprivatising RBS before the end of the 2018-19 fiscal year - a much-needed boost for finance minister Philip Hammond's coffers.

And the bank recently revealed that this year's first-quarter net profits more than tripled on lower restructuring costs and rising income. He described a new policy in which US prosecutors will work closely with their counterparts in other enforcement agencies to coordinate penalties, with the Justice Department adjusting its assessments to account for other fines.

With (Other OTC: WWTH - news) the penalty paid, RBS can now open talks with United Kingdom regulators about the resumption of dividend payments.

"This is hardly a Silicon Valley company".

"We need to consider the impact on innocent employees, customers and investors who seek to resolve problems and move on", he said.

The final agreement may take several weeks to negotiate, RBS said.

Related Articles

  • Carney - rates likely to rise over the next year

    He added: 'However, the Bank is also anxious that the underlying pace of economic growth may have in fact waned so far this year. Export growth and investment should be particularly important drivers of growth, aided by the weak pound , the Bank believes.
    Google's Smart Displays with Google Assistant go on sale starting in July

    Google's Smart Displays with Google Assistant go on sale starting in July

    Graphics suggest the sounds are meant to mimic a sitar, guitar, a piano and something called a "resopad". Some people are waving when their images appear on giant screens around the stage.
    Who is Patrick Morrisey? A look at the West Virginia Senate hopeful

    Who is Patrick Morrisey? A look at the West Virginia Senate hopeful

    Trump made an 11th-hour appeal to West Virginia voters to block Blankenship from winning the party's nomination. Morrisey attacked Jenkins for past political activities as a Democrat.
  • Hockey League's Longest Game Ends With Checkers' Loss

    Hockey League's Longest Game Ends With Checkers' Loss

    And while Charlotte goalie Alex Nedeljkovic was impressive too, stopping 51 shots, Lyon really stood on his head in the win. It surpassed the Philadelphia Phantoms' 3-2 win over the Albany River Rats in 2008 that lasted 142 minutes, 58 seconds.
    Royal wedding: Meghan Markle waxwork unveiled at Madame Tussauds museum

    Royal wedding: Meghan Markle waxwork unveiled at Madame Tussauds museum

    Apartment 1 is a serious improvement from their current residence, Nottingham Cottage , where Prince Harry has lived since 2013. You and the royal family should put an end to this fake fairytale wedding before it's too late. "She's like this ice queen ".
    Rooney in talks with DC United

    Rooney in talks with DC United

    Both newspaper reports claim that he wants to stay at Goodison but not if he isn't central to plans at Goodison going forward. Liverpool - Wayne Rooney on Tuesday appeared to be closing in on a sensational move to Major League Soccer side DC United .
  • Northfield High School ranked among best in country

    Northfield High School ranked among best in country

    OSHS ranked #1476 out of the 22,000 schools examined, meaning it ranked among the top seven percent of all high school nationwide. NHS generally reports test scores above the state average, has a high graduation rate and offers a large variety of AP courses.
    Australian Government Allocates $700000 To Blockchain Study

    Australian Government Allocates $700000 To Blockchain Study

    The program is predicted to have the potential to revolutionise health care by enabling more accurate diagnosis and treatment. The government said the physical activity programs developed would be specifically designed for older people.
    Here Are All the New Android TV Features Announced at Google I/O

    Here Are All the New Android TV Features Announced at Google I/O

    You can drag this button right from any app that you're in to quickly switch to an app, and then switch back again. Google Lens is capable of scanning a product, image or animal in your environment and tell you what object it is.
  • Paul George undergoes knee surgery

    Paul George undergoes knee surgery

    George posted an image on his Instagram story prior to the surgery taking place on Wednesday with the caption "Good Spirits". Over the past year, several teams have been discussed as possible destinations for the forward.
    Captured Isis aide forced to snare fellow leaders

    Captured Isis aide forced to snare fellow leaders

    The Iraqi air force has carried out several air strikes since previous year against Islamic State positions in Syrian territory. President Donald Trump tweeted about the raid, saying those arrested were the "five most wanted" IS "leaders".
    USPSTF Issues New Recommendation On Prostate Cancer Screening

    USPSTF Issues New Recommendation On Prostate Cancer Screening

    The guidance doesn't apply to men younger than 55 because they are considered low risk. A longer version of this piece was published by Stanford Health Policy.