RBS agrees $4.9bn US fine in 'milestone moment'

Will enable government to sell further shares

Beth Brearley
clock • 1 min read

The Royal Bank of Scotland (RBS) has been fined almost $5bn by the US Department of Justice (DoJ) relating to its role in the subprime crisis.

The $4.9bn civil settlement with the DoJ - which is lower than analysts predicted and includes $3.46bn that has already been covered - will mean the government is able sell more shares in the bank, the Financial Times reports. The preliminary deal follows the DoJ's investigation into the issuance and underwriting of US residential mortgage-backed securities by the bank between 2005 and 2007, and follows a separate fine of $5.5bn agreed in July 2017 with the Federal Housing Finance Agency. UK Chancellor Philip Hammond laid out plans last year to sell a stake of up to £3bn in RBS - whic...

To continue reading this article...

Join Professional Adviser for free

  • 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

Join

 

Already a Professional Adviser member?

Login

More on Investment

Watch Professional Adviser's Working Lunch with Baillie Gifford - Enduring Growth in a Changing World

Watch Professional Adviser's Working Lunch with Baillie Gifford - Enduring Growth in a Changing World

Catch up on the discussion

Professional Adviser
clock 21 August 2025 • 1 min read
PA Awards 2025: Why MyFolio Index came out top as Best Risk Targeted Range of Funds

PA Awards 2025: Why MyFolio Index came out top as Best Risk Targeted Range of Funds

Aberdeen Investments Senior Investment Director and Head of Managed & Model Solutions Justin Jones shares what sets MyFolio Index apart following its Best Risk Targeted Range of Funds award win at the Professional Adviser Awards 2025.

Professional Adviser
clock 19 August 2025 • 3 min read
Woodford IM hits back at FCA's enforcement action including £46m in fines

Woodford IM hits back at FCA's enforcement action including £46m in fines

WIM said it 'strongly disagrees' with the regulator's decision

Cristian Angeloni
clock 05 August 2025 • 3 min read