RBS: agrees settlement with U.S. over RMBS
(CercleFinance.com) - Royal Bank of Scotland on Thursday agreed to a 4.
9-billion-dollar settlement with the U.S. government to settle charges relating to the US residential mortgage-backed securities (RMBS) the bank sold between 2005 and 2007, before the financial crisis.
Of this amount, about 3.5 billion dollars will be covered by existing provisions, with an incremental charge of 1.4 billion dollars to be taken in the second quarter of 2018, RBS said.
"Today's announcement is a milestone moment for the bank", CEO Ross McEwan said.
"Removing the uncertainty over the scale of this settlement means that the investment case for this bank is much clearer", he added.
Investors seemed to agree with the statement, and RBS shares were trading 3.5% higher this morning in London.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
9-billion-dollar settlement with the U.S. government to settle charges relating to the US residential mortgage-backed securities (RMBS) the bank sold between 2005 and 2007, before the financial crisis.
Of this amount, about 3.5 billion dollars will be covered by existing provisions, with an incremental charge of 1.4 billion dollars to be taken in the second quarter of 2018, RBS said.
"Today's announcement is a milestone moment for the bank", CEO Ross McEwan said.
"Removing the uncertainty over the scale of this settlement means that the investment case for this bank is much clearer", he added.
Investors seemed to agree with the statement, and RBS shares were trading 3.5% higher this morning in London.
Copyright (c) 2018 CercleFinance.com. All rights reserved.