Thursday, 10 May 2018

Royal Bank of Scotland set for share sale after agreeing $4.9bn US penalty

Royal Bank of Scotland has agreed a $4.9bn (£3.6bn) penalty with US regulators, paving the way for the government to sell down its 70% stake.

The long-running probe focused on the sale of financial products including toxic mortgage bonds in 2005-7, ahead of the financial crisis.

RBS was bailed out by the government at the height of the financial crisis.

Chief executive Ross McEwan said the settlement will create a "cleaner bank" that is easier to sell.

Chancellor Philip Hammond said the agreement "marks another significant milestone in RBS's work to resolve its legacy issues, and will help pave the way to a sale of taxpayer-owned shares".

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