Royal Bank of Scotland (RBS) is closing on a multibillion-pound settlement with a US regulator over the mis-selling of toxic mortgage bonds - a deal that will remove one of the long-standing obstacles to the Government returning the lender to the private sector.
Sky News has learnt that lawyers at RBS are in advanced talks with the Federal Housing Finance Agency (FHFA) about a deal that is almost certain to cost the state-backed bank more than $4.5bn (£3.5bn).
A source in Whitehall said that the discussions had progressed sufficiently far to leave both sides hopeful that an announcement can be made in the next few weeks.
The precise size and timing of the fine are still moving around and are subject to further negotiations, the sources said, with more detailed discussions said to have taken place in recent weeks.
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