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...

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