RBS Pays $1.1 Billion to Settle Lawsuits in U.S.
September 28 2016 - 3:03AM
Dow Jones News
By Rebecca Byrne
LONDON-- Royal Bank of Scotland Group PLC has agreed to pay $1.1
billion to a U.S. regulator to resolve two civil lawsuits over the
way it sold mortgage-backed securities in the run-up to the
financial crisis.
The U.K. lender said the settlement with the National Credit
Union Administration Board is substantially covered by existing
provisions and will have no material impact on its common equity
Tier 1 ratio--a measure of high-quality capital as a share of
risk-weighted assets.
However, the bank continues to face other claims over the
alleged mis-selling of mortgage-backed securities before its
GBP45.5 billion ($59.22 billion) government bailout in 2008.
RBS remains under investigation by the U.S. Justice Department,
and the bank said additional provisions in future periods could be
"materially in excess" of those existing as of June 30.
(END) Dow Jones Newswires
September 28, 2016 02:48 ET (06:48 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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