May
09

RBS Agrees to Pay $4.9 Billion to Settle U.S. Mortgage Probe

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  • Deal removes ‘uncertainty’ over the potential cost, CEO says
  •  Lender must still hash out final terms with U.S. authorities

Royal Bank of Scotland Group Plc said it reached a tentative agreement to pay a $4.9 billion penalty to resolve a long-running U.S. probe into its packaging and sale of mortgage-backed securities before the 2008 financial crisis.

While most of the cost will be covered by money the company already set aside, the deal will cut second-quarter earnings by $1.44 billion, the bank said in an emailed statement. Analysts had estimated the firm would pay more to resolve U.S. scrutiny of its mortgage business. At Deutsche Bank AG they projected $9 billion, and at Bloomberg Intelligence more than $11 billion…

 RBS Agrees to Pay $4.9 Billion to Settle U.S. Mortgage Probe

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Categories : Mortgage

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