Home » Money

RBS agrees $4.9bn to settle United States subprime case

11 May, 2018, 01:02 | Author: Samuel Sharp
  • Royal Bank of Scotland chief executive Ross McEwan

The penalty from the US Department of Justice resolves the investigation into the lender's "issuance and underwriting of US residential mortgage-backed securities" between 2005 and 2007, RBS said this morning. The British government insisted that the USA claims had to be resolved before it could sell its 72 percent stake in RBS.

RBS is one of the last to settle with USA regulators, following rival Barclays, which agreed a two billion U.S. dollar (£1.5 billion) agreement in March with the DoJ and Deutsche Bank, which struck a 7.2 billion United States dollars (£5.3 billion) settlement at the end of 2016. Barclays (LSE: BARC.L - news) agreed to a $2bn (£1.4bn) settlement with the DOJ in March.

RBS agreed to pay $5.5 billion a year ago to settle a separate investigation by the US Federal Housing Finance Agency.

RBS was bailed out by the government at the height of the financial crisis.

The proposed settlement is subject to the Department of Justice and RBS entering into a legally-binding agreement, and there can be no assurance that the parties will agree on the final terms of any proposed settlement, RBS said. The British government announced in November that it planned to sell off £3 billion ($4.07 billion) worth of RBS shares in the 2018-2019 fiscal year and it looks as if those plans will now go ahead. It had already paid just over $7 billion in other settlements with various US authorities.

With (Other OTC: WWTH - news) the penalty paid, RBS can now open talks with United Kingdom regulators about the resumption of dividend payments.

"The fact they can begin to think about how to return that to shareholders is a major and long-awaited change", said Olivia Treharne, a fund manager at Legal & General Investment Management, RBS's number 10 shareholder according to Thomson Reuters data.

The letter said the bank had only received one such claim so far, but expected it could face some very large claims once the claims process gets further underway.

"This is hardly a Silicon Valley company".

"We need to consider the impact on innocent employees, customers and investors who seek to resolve problems and move on", he said. The DOJ settlement could clear the way for the government to offload its stake.

RBS may have benefited from settling under Trump's administration, which has been softer on banks than that of his predecessor Barack Obama.

RBS said about £2.6billion of the penalty would be covered by money already set aside.


  • California May Require Solar Panel Installations On Every New Home

    California May Require Solar Panel Installations On Every New Home

    This initiative may be obsolete, as net zero homes would still draw power from the energy grid in certain circumstances. In addition to single-family homes, they would apply to new multifamily buildings of three stories or less.
    Childish Gambino's provocative This is America video tackles racism, gun violence

    Childish Gambino's provocative This is America video tackles racism, gun violence

    Speaking to The Current's Anna Maria Tremonti, Bedour Alagraa and Ricky Jones debate the violence in Childish Gambino's new video. The Hiro Murai-directed music video is shot in a fluid format and references significant moments from the past and recent events.
    Molina has Surgery Following Foul Tip to the Groin

    Molina has Surgery Following Foul Tip to the Groin

    Cardinals left fielder Marcell Ozuna was more succinct. "That was a bad one", Matheny said, via ESPN . Molina immediately fell to the ground in pain and was replaced by Francisco Pena .
  • Cordray, DeWine projected to win OH  gubernatorial primaries

    Cordray, DeWine projected to win OH gubernatorial primaries

    Trump referred to as a "socialist", also won his party's nomination by a large margin , earning just over 62 percent of the vote. Trump's blue-collar appeal. "He will be a great Governor with a heavy focus on HealthCare and Jobs", the President tweeted .
    Sox Vs Yanks In London 2019

    Sox Vs Yanks In London 2019

    As part of the two-year deal another series will be played in London in 2020. Khan said: " London is the sporting capital of the world".
    Melania Trump launches 'Be Best' awareness campaign for children

    Melania Trump launches 'Be Best' awareness campaign for children

    Cyberbullying is expected to be part of the first lady's platform and Sanders said Melania Trump "sees it as an important issue". The campaign will focus on the well-being of children, fighting the opioid epidemic and social media use.
  • Saudi Arabia, Gulf Allies Join Israel in Backing US Iran Move

    Saudi Arabia , which is pumping just under 10 million barrels a day, has the capacity to produce 12.5 million over time. The International Atomic Energy Agency has so far verified Iran's adherence to the deal.
    IMD issues thunderstorm warning in northern and eastern India

    IMD issues thunderstorm warning in northern and eastern India

    The Meteorological Department has said that there is a possibility of heavy rains and storms in northern India. Earlier today, a dust storm was also reported from Rajasthan's Bikaner and Jaisalmer districts.
    Gaza blast kills six Hamas gunmen

    Gaza blast kills six Hamas gunmen

    He said the men had been close to the border fence, but that he was not sure if they actually crossed into Israel. The protests have seen thousands gather to demand access to their families' lost homes or lands, now in Israel.
  • Lawyers for Michael Cohen accuse Stormy Daniels attorney of distributing false information

    Lawyers for Michael Cohen accuse Stormy Daniels attorney of distributing false information

    He said they failed "to address, let alone contradict, 99% of the statements in what we released". The raids were carried out by federal agents looking for evidence in a criminal probe.
    Nina Compton wins South's top chef at James Beard Awards

    Nina Compton wins South's top chef at James Beard Awards

    Photo Dolester Miles, who has been making desserts for Highlands Bar & Grill since 1982, was named Outstanding Pastry Chef. Two other local chefs, Amy Brandwein of Centrolina and Tom Cunanan of Bad Saint, joined him as finalists in the category.

    Liverpool reportedly agree deal with Lyon for Nabil Fekir

    There's little doubt Fekir would be an exciting acquisition for the Anfield club and the Premier League as a whole. We hope to keep him and have him playing the Champions League with us next year".


Justice Chelameswar writes letter to CJI on Justice KM Joseph elevation…
The collegium had on January 12 recommended justice KM Joseph and senior advocate Indu Malhotra as judges to the Supreme Court. He was part of the two-judge bench that delivered the historic judgement striking down section 66 (A) of the IT Act.

Gas prices expected to rise throughout summer months
On net, analysts figure the recent jump in oil prices are likely to be a wash for the USA economy, or modestly negative. In fact, customers are seeing the highest prices at the pump since 2014, at $2.81 a gallon on average nationwide.

CDC: Tainted lettuce has sickened 149 in 29 states
However, children younger than 10, the elderly, and those with compromised immune systems are at risk of developing complications. As of May 1, 2018, 121 people infected with the outbreak strain of E. coli O157:H7 have been reported from 25 states.

Ottawa Hills named top 5 high school in Ohio
The school offers a variety of honors and Advanced Placement courses, including computer science, physics and foreign language. "We are very proud to be nationally recognized as a high-achieving school by U.S.

Ohio State Grad Transfer QB Joe Burrow to Visit Cincinnati, LSU
For quarterback-needy teams, this is about as close to a free agent as there is in college football. That's where former 4-star quarterback Joe Burrow finds himself.

Manchester United thankful for outpouring of support for Alex Ferguson
Wenger, the Arsenal manager who was Ferguson's great rival for years, said: "It's fantastic news". Concise News had reported that the former United manager is now out of intensive care .

Nintendo is Hiring a Level Designer for Making Zelda
That being said, it will be hard to make anything more than educated guesses as to what this game will look like. Will create events/dungeons/fields/enemies from design to actual implementation.

Caps finally come through in clutch
We're looking to gain respect, and we've been given an opportunity. "But we can't make it bigger than a game". The sounds of celebration from the Capitals' dressing room in Pittsburgh echoed through the arena hallways.

Apple iPhone X's Face ID technology has got problems
What does the rear camera have to do with Face ID? The wide angle did those who worked and is joined to the front-facing camera. Further, if it fails in this test, the employee has to eventually replace the whole unit with a new device for the consumer.

GGG equals record after second round KO
Golovkin (38-0-1, 34 KOs) was originally scheduled to rematch Alvarez at the T-Mobile Arena in Las Vegas in a 5 March blockbuster. It was also a return to form for the 36-year-old, who had failed to knock out his last two opponents, Alvarez and Daniel Jacobs .