RBS: Multi-Billion Pound Fine for Mis-Selling Imminent

Royal Bank of Scotland (RBS) is set to to announce in the next few days that it is on the receiving end of another multi-billion pound charge for mis-selling mortgage-backed securities, according to Sky News.

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The precise size of the provision to be included in the bank's 2016 full-year results was unclear, but is expected to be between $3 billion (£2.4 billion) and $4 billion (£3.2 billion).

RBS is already in the process of preparing for a DoJ Settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term by putting aside billions of dollars for a fine for an eventual settlement which could even be as high as $12 billion (£9.5 billion).

Last month, Barclays was sued by the DoJ for refusing to settle a multi-million dollar claim, while Deutsche Bank agreed to pay $7.2 billion in penalties to resolve the case.

In terms of fines, the mis-selling of residential mortgage-backed securities has been the biggest scandal to emerge from the pre-crisis era, with investors duped into buying toxic mortgages that were packaged up by banks and sold as ultra-safe.

Based on its share of selling these securities, analysts believe that RBS can expect to pay a fine at least as large as Deutsche Bank's.

Until now, it has been unclear when RBS would be able to announce a formal settlement with the DoJ, but current speculation suggests that a deal may be imminent.