View more on these topics

RBS pays £3.6bn to settle crisis-era misdeeds

RBS-Building-2012-700x450.jpgThe Royal Bank of Scotland will pay its first dividend since the financial crash as it has agreed to pay $4.9bn (£3.6bn) to US regulators to settle claims it misled investors.

Yesterday, the US Department of Justice said the penalty is the record fine imposed on a bank for misconduct leading up to the financial crisis.

The fine was agreed in principle in May.

RBS has been trying to move on from allegations by US authorities it misled investors in underwriting and issuing residential mortgage-backed securities by understating the risks behind many of the loans.

These loans were underwritten and issued between 2005 and 2008, which the department said generated hundreds of millions of dollars for the bank.

According to a London Stock Exchange update, the settlement included a statement of facts based on calls and emails from RBS executives at the time, which demonstrate how investors were misled.

US Attorney for the District of Massachusetts Andrew Lelling says: “This resolution – the largest of its kind – holds RBS accountable for defrauding the people and institutions that form the backbone of our investing community.”



RBS still under FCA review over unsuitable advice

Royal Bank of Scotland is still under FCA review over historic pensions and investment advice, it has revealed in financial results this morning. Predecessor regulator the FSA investigated a number of banks and building societies over the investment advice they offered to retail clients, producing a report on failings in 2013. RBS, along with other […]


Govt loses more than £2bn on RBS share sale

The government has lost more than £2bn through the latest RBS share sale. More than £2.5bn of government-owned RBS shares have been sold as part of returning the bank to private ownership. The government’s shareholding has been reduced by 7.7 per cent to 62.4 per cent. Through the deal 925 million shares were sold at […]


RBS agrees to pay $4.9bn to US

Royal Bank of Scotland has agreed to pay the US Department of Justice $4.9bn (£3.6bn), paving the way for the British government to sell more shares in the bank. RBS said the settlement was agreed on Wednesday night and most of the sum is already covered. The prospect of a heavy fine by US authorities […]

Life cover for life

When someone mentions whole of life plans, most people will think of a niche product that serves as an inheritance tax planning tool for high-net-worth clients. And it’s really not surprising they’ve been pigeonholed in that waybecause before the arrival of RDR in 2013, that’s more or less exactly what they were. For advisers thinking […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm