May
09
RBS Agrees to Pay $4.9 Billion to Settle U.S. Mortgage Probe
By-
Deal removes ‘uncertainty’ over the potential cost, CEO says
- Lender must still hash out final terms with U.S. authorities
Royal Bank of Scotland Group Plc said it reached a tentative agreement to pay a $4.9 billion penalty to resolve a long-running U.S. probe into its packaging and sale of mortgage-backed securities before the 2008 financial crisis.
While most of the cost will be covered by money the company already set aside, the deal will cut second-quarter earnings by $1.44 billion, the bank said in an emailed statement. Analysts had estimated the firm would pay more to resolve U.S. scrutiny of its mortgage business. At Deutsche Bank AG they projected $9 billion, and at Bloomberg Intelligence more than $11 billion…
RBS Agrees to Pay $4.9 Billion to Settle U.S. Mortgage Probe
