Royal Bank of Scotland Group Plc will pay $1.1 billion to resolve claims that it sold toxic mortgage-backed securities to credit unions that later failed, the US National Credit Union Administration (NCUA) said.
The resolution comes as RBS prepares to settle a number of US cases where it is accused of mis-selling mortgage-backed bonds and brings the US regulator’s recoveries against various banks to $4.3 billion over their sales of such securities before the 2008 financial crisis.
NCUA board chairman Rick Metsger said the regulator plans to continue “to pursue recoveries against financial firms that we maintain contributed to the corporate crisis”.
This case is included in the around $5 billion RBS has set aside to settle historic misconduct charges, including a long-running investigation by the Department of Justice, but some analysts estimate the total claims will be much larger.
Under the settlement, RBS does not admit fault, the NCUA said in a statement.