Royal Bank Of Scotland Group to pay $5,5 billion fine to settle subprime mortgage deal The Scottish bank has reached an agreement with the Federal Housing Finance Agency, the American agency that supervises the mortgage giants Fannie Mae and Freddie Mac, which ended up under government control during the financial crisis. RBS was accused of alleged violations of the sale of subprime mortgage-backed securities during the financial crisis.
According to the note, RBS, 71% controlled by the British government, has already set aside the funds to cover most of the sum. The company will also have to bear additional charges of 196 million, to be accounted for in the results that will be published in August. In total Rbs $8,3 billion was set aside to cover costs related to a series of lawsuits related to the subrime and the financial crisis.
