Wednesday 25 January 2017 7:35 pm

RBS to be hit by multi-billion-pound charge for mis-selling mortgage-backed securities


I am City A.M.'s news editor. I love interviewing entrepreneurs, carrying out investigations through freedom of information requests and covering all the latest goings on in the world's great city, London. I started my career as an intern at LondonLovesBusiness.com in 2011 and became editor in 2015. I joined City A.M. as deputy night editor in July 2016.

I am City A.M.'s news editor. I love interviewing entrepreneurs, carrying out investigations through freedom of information requests and covering all the latest goings on in the world's great city, London. I started my career as an intern at LondonLovesBusiness.com in 2011 and became editor in 2015. I joined City A.M. as deputy night editor in July 2016.

RBS is set to be hit by a new multi-billion-pound charge for mis-selling mortgage-backed securities. 

A formal statement confirming the charge could come as soon as today with RBS directors expected to discuss the move in a board meeting this week. 

The charge could be between $3bn (£2.4bn) and $4bn, sources told Sky News last night. 


The state-owned bank has reportedly set billions of dollars aside to settle a fine with the US Department of Justice (DoJ).

Read more: US fine will let RBS turn page on a horror decade

The head of UK Financial Investments (UKFI), which looks after the taxpayer's stake in the bank, told MPs last year that it could be anything up to $12bn.

Last month, the DoJ sued Barclays and two of its executives over alleged fraud issuing mortgage-backed securities during the 2008-2009 financial crisis.

Meanwhile, Deutsche Bank and Credit Suisse reached a $7.2bn and $5.28bn settlement respectively as part of the same probe

 

Share