R.B.S. to Pay $5.5 Billion to Settle Toxic Mortgage Claims in U.S.<br />By CHAD BRAYJULY 12, 2017<br />LONDON — The Royal Bank of Scotland said on Wednesday<br />that it had agreed to pay $5.5 billion to American authorities to resolve claims related to its underwriting and sale of toxic mortgage securities.<br />Ewen Stevenson, the bank’s chief financial officer, said in a conference call on Wednesday<br />that he could not provide an update on talks with the Justice Department, but that he remained hopeful that the inquiry could be resolved this year.<br />said it continued to cooperate with investigations by the United States Justice Department<br />and other American regulators into the sale of mortgage-backed securities, which could lead to further settlements or penalties.<br />“This settlement is a stark reminder of what happened to this bank before the financial crisis,<br />and the heavy price paid for its pursuit of global ambitions.”<br />In the fourth quarter, R. B.S.<br />set aside an additional $3.8 billion for investigations<br />and litigation related to the sale of residential mortgage-backed securities as its rivals reached settlements with the American authorities.
