RBS pays £3.7bn to settle US mortgage securities case
RBS Group has reached a final settlement with the US Department of Justice to resolve its investigation into RBS’s issuance and underwriting of residential mortgage-backed securities between 2005 and 2007.
"This settlement holds RBS accountable for serious misconduct that contributed to that financial crisis."
Under the terms of the settlement, which was first proposed in May, RBS will pay a cash penalty of $4.9 billion (£3.7 billion) - the largest imposed to date by the DoJ for financial crisis-era misconduct.
Now that the fine is settled, RBS will pay its first dividend to shareholders since its 2008 bailout.
Ross McEwan, RBS chief executive, said: “We are pleased to have reached a final settlement with the DoJ and that we can focus our energy on serving our customers better and returning capital to our shareholders.”
“This settlement dates back to the period between 2005 and 2007. There is no place for the sort of unacceptable behaviour alleged by the DoJ at the bank we are building today.”
Acting associate attorney general, Jesse Panuccio, commented: "Many Americans suffered lasting economic harm as a result of the 2008 financial crisis. This settlement holds RBS accountable for serious misconduct that contributed to that financial crisis."
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