RBS may face $10bn payout

Royal Bank of Scotland could have to pay $10bn to settle lawsuits from US authorities over its role in selling the complex investments that helped cause the credit crunch.

The Daily Express reports that US regulators are thought to be targeting a number of banks, including State-backed RBS and Barclays, for selling toxic bonds or investments backed by US mortgages, including sub-prime loans, to investors.

According to analysis prepared for the board of one large Wall Street bank, RBS could have to pay between $4bn and $10bn, based on previous settlements.

In November JPMorgan paid $13bn to settle all mortgage bonds litigation with the US government. The analysis claims that the banks collectively may have to pay $50bn to US authorities to settle claims arising from the sale of the disastrous investments.

The sale and proliferation of US mortgage-backed securities is widely acknowledged as a cause of the credit crunch.

To access the complete Daily Express article hit the link below:

US lawsuits could cost RBS $6 Billion

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image: © Elliot Brown

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