RBS could reach settlement over mortgage mis-selling in weeks

RBS building

Royal Bank of Scotland could reach a settlement within weeks on claims it misled investors in selling U.S. mortgage-backed securities, passing another milestone in its recovery from the financial crisis, analysts said on Friday.

Reuters reports that U.S. authorities struck a $5.1bn settlement with Goldman Sachs on Thursday, leaving RBS as the only other major case involving mis-sold U.S. mortgage-backed bonds still to be resolved.

Court documents filed in the United States in June suggested RBS could have to pay as much as $13bn to settle the mortgage-backed securities claims, although some analysts' estimates are much lower.

Analysts expect U.S. regulators will be keen to wrap up the case well before U.S. presidential election campaigning begins in earnest.

'RBS is next in line and we would expect a settlement very soon', Chirantan Barua, analyst at Bernstein Research, said.

To access the complete Reuters article hit the link below:

RBS settlement on U.S. mortgages could come within weeks - analysts

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