The chairman of UK Financial Investments, the body responsible for the government's stake in Royal Bank of Scotland (RBS) and Lloyds Banking Group, has warned that RBS could face further fines from regulators over sales linked to the US sub-prime mortgage crisis.
Robin Budenberg, who joined UKFI in 2010 from UBS, told the Treasury Select Committtee (TSC) on Tuesday that while it was difficult to estimate future liabilities, potential fines had formed a "fundamental part of discussions" between the RBS board and the Bank of England's Prudential Regulation Authority (PRA), the Telegraph reports. Making reference to J.P. Morgan, which last month agreed to pay $5bn to settle a string of legal cases relating to sales of mortgage-backed securities, Mr Budenberg said mortgage trading was one of the outstanding issues RBS faced. "It is clear that the ...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
