RBS pays £846m fine

28 September 2016
RBS pays £846m fine

RBS are going to pay $1.1 billion (that's £846 million to you) to settle National Credit Union Administration claims that they sold faulty mortgage-backed securities to American credit unions.

This is the latest in a number of settlements which has seen banks paying huge amounts of money, from sales which related to the collapse of corporate credit unions in the aftermath of the 2008 financial crisis.

After all these years, the problems still keep mounting up, worldwide.

This RBS pay-out closes the chapter on the 2011 lawsuits which were filed in California and Kansas, and follows another payment that the banking group agreed to pay, which was $129.6 million to sort out two other similar lawsuits.

The NCUA, who regulate the credit unions said: "NCUA is pleased with today's settlement and fully intends to stay the course in fulfilling its statutory responsibilities to protect the credit union system and to pursue recoveries against financial firms that we maintain contributed to the corporate crisis."

RBS are being bullish about the whole thing, saying that these costs are covered "substantially" and that all this will have no impact on the bank's capital.

The NCUA are pretty good at getting money out of banks - last year, they got $325 million from Barclays, $225 million from Morgan Stanley and $53 million from Wells Fargo, and they're still going after Credit Suisse and UBS Group.

This isn't over.

TOPICS:   Banking

What do you think?

Connect with Facebook, Twitter, or just enter your email to sign in and comment.

Your comment