One of the largest international banking and financial service, RBS, is looking to pay a whopping $500 million to resolve charges from their investors. The financial institution is looking to fix their current charges which revolve around misleading and risky mortgages securities.
The bank is looking to amend some of the crisis they had in the previous years. Results also showed that the mortgages securities scandal they had contributed to the latter 2008 global financial crisis. The financial institution is looking to settle the charges in the states of New York.
Reports revealed that the RBS is the sixth financial institution and bank to settle the similar claims and legal debacles in the states of New York. The current settlements are looking
RBS Settlement Breakdown
Breaking down the settlement fee, the British financial institutions are looking to pay a whopping $100 million in cash to the state and are going to provide a total of $400 million in relief to the homeowners and communities.
The payment is also looking to include the funds for building the affordable housing. Furthermore, the bank is still looking to pay additional fines and legal settlements as they face the United States Department of Justice.
Furthermore, RMS Chief Executive Ross McEwan noted that “Putting our remaining legacy issues behind us is a key part of our strategy,” and “Settling these issues is a stark reminder of the heavy price we continue to pay for the global ambitions pursued by the bank in the run-up to the crisis.”
More RBS Information
According to RBS, they have been preparing for these settlements and fines as they reportedly put aside a whopping 3.2 billion pound or a whopping $4.4 billion just to cover everything. The company has admitted in 2006 and in 2007 that they misled investors to mortgage-backed securities.
The British native financial institution is looking to join the ranks of JP Morgan, Bank of America, Citigroup, Morgan Stanley, and Goldman Sachs in settling the same fines. JP Morgan has even faced a massive $1 billion fine last 2013.
Attorney General’s Note
Furthermore, the attorney general’s office noted that JP Morgan’s $1 billion settlement is the largest among the bunch. New York’s Attorney General Eric Schinderman, “While the financial crisis may be behind us, New Yorkers are still feeling the effects of the housing crash,”
Schinderman also noted that “Today’s settlement is another important step in our comprehensive effort to help New Yorkers rebuild their lives and communities.”
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