RBS Increases Provisions For Fines

RBS announced on Thursday that it has set aside a further $3.8 billion to cover expected fines from U.S. authorities over its handling of residential mortgage-backed securities in the run-up to the 2008 financial crisis.

RBS said the additional provision would mostly be for a penalty expected to be imposed by the Department of Justice and other agencies over its issuing and underwriting of U.S. residential mortgage-backed securities (RMBS) during the U.S. housing boom of the 2000s.

RBS’s total package for provisions related to the mortgage-selling misconduct now stands at $8.3 billion.