RBS agrees £845 million deal with US regulator over mis-sold mortgage bonds
28 Sep 2016

The taxpayer-backed lender reached the agreement with the National Credit Union Administration Board, which regulates credit unions in America.

RBS sold the mortgage securities to the US Central Federal Credit Union and Western Corporate Federal Credit Union, but the bonds later proved toxic and failed after the US housing bubble burst in 2008.

The bank, which does not admit fault under the deal, said the settlement is “substantially” covered by the £3.8 billion already put aside to cover upcoming litigation.

But RBS still faces potentially mammoth settlements over mis-selling of mortgage securities turned sour in the US, with claims still outstanding with the Federal Housing Finance Agency and US Department of Justice (DoJ).

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