RBS earmarks a further £3bn for mis-selling claims

'‹'‹Royal Bank of Scotland has set aside another £3.1'‹bn to settle claims from US authorities that it mis-sold risky mortgage securities in the run-up to the financial crisis.
By The Newsroom
Published 26th Jan 2017, 08:52 BST
Updated 26th Jan 2017, 08:57 BST
RBS is expected post one of its largest losses since its Government bailout at the height of the financial crisisRBS is expected post one of its largest losses since its Government bailout at the height of the financial crisis
RBS is expected post one of its largest losses since its Government bailout at the height of the financial crisis

The taxpayer-backed lender said the provision takes its total to £6.7​bn, but it remains in talks with the US Department of Justice over a settlement.

RBS said it was still uncertain when a deal will be reached and added that further "substantial" additional provisions may still be needed.

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The mammoth provisions, which will be included in the bank's results for the fourth quarter of 2016, will push RBS deeper into the red when it posts full-year figures next month.

It is likely to see the group - which is 72​ per cent​ owned by taxpayers - post one of its largest losses since its government bailout at the height of the financial crisis.

RBS chief executive Ross McEwan said: "Putting our legacy litigation issues behind us ... remains a key part of our strategy.

"It is our priority to seek the best outcome for our shareholders, customers and employees."

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The provisions come after German investment banking giant Deutsche Bank and Swiss group Credit Suisse agreed to settle similar claims late last year for their role in the mis-selling of toxic mortgage-backed securities, paying a combined £9.9​bn.

But Barclays refused to agree a settlement and the Department of Justice is now taking legal action against the British bank.

Related topics:Barclays