The RBS chief executive, Ross McEwan, said the agreement in principle was a milestone moment for the bank. The penalty relates to the sale of financial products linked to risky mortgages in the US between 2005 and 2007. The taxpayer is sitting on a loss of about £26bn after the £45.8bn bailout of RBS during the financial crisis. The prospect of a large penalty had been hanging over RBS for years, making its shares hard to value. The DOJ penalty comes after RBS’s $5.5bn settlement with the Federal Housing Finance Agency last year, and its $500m settlement with New York state last month.

Source: The Guardian May 10, 2018 06:57 UTC