- July 7, 2017
- Posted by: cooperstern
- Category: Uncategorized
Royal Bank of Scotland (RBS) are reportedly just steps away from sealing a multi-million-pound settlement with the US Federal Housing Finance Agency (FHFA), over mortgage bond mis-selling.
During the pre-crisis era, RBS mis-sold mortgage bonds to US government backed loan firms, Fannie Mae and Freddie Mac, which make up the FHFA.
According to Sky News, a settlement amounting to $4.5bn (£3.5bn), possibly higher, could be reached by the end of the week, but this could run into next week.
Once the deal has been finalised, the 70% Government owned lender, RBS, will be able to set its sights towards making its first profit since the £45.5bn taxpayer bailout.
The Bank reported its ninth straight annual loss this year, after losses trebled to £7bn.
Royal Bank of Scotland are also expecting to engage in formal settlement talks with the Department of Justice (DoJ) about another penalty connected to the way the Bank packaged and sold residential mortgage back securities.
This process has been delayed due to ‘a clear-out of senior officials at the agency under President Donald Trump’s new administration,’ as reported by Sky News.
The DoJ fine is expected to amount to billions of pounds, in addition to the penalty imposed by FHFA.
RBS is the final bank out of a total of 18 to settle with the FHFA, but a number of Banks are yet to settle with the US Department of Justice, including Barclays who are currently in a legal battle with the agency.
Royal Bank of Scotland declined to comment.
How can we help?
Cooper Stern have acted on behalf of a number of client’s who have suffered losses as a result of being mis-sold investment products. If you believe that you may have been mis-sold, we can carry out a no-obligation review of your claim, with a no win no fee arrangement if you decide to go ahead. Our team of legal, financial and investment professionals will fight for you and your savings to obtain satisfactory compensation.
You can fill in our simple online enquiry form and one of our expert advisors will call you back to discuss your product in more detail. Alternatively, you can call us on 01204 328 287 and we will be more than happy to discuss your queries.