According to the body which controls the taxpayer stake in the bank,it was stated that the "Royal Bank of Scotland could face a penalty of more than £9.6bn to settle a decades-old mis-selling scandal of residential mortgage-backed securities (RMBS) before the 2008 banking crisis in the US.
The scale of the penalty is one of the reasons cited by the chancellor, Philip Hammond, for abandoning any hope of further reducing the taxpayer stake, which currently stands at 73%.
However, James Leigh-Pemberton pointed to negotiations under way between the DoJ ( US Department Of Justice) and Deutsche Bank, which have started at $14bn. He said the RBS fine “might be $5bn, it might be $12bn”. He added: “Based on the assessment of the fine was on market estimates: analysts are expecting the bank to set aside between £4.2bn and £9bn of further provisions for RBS to cover fines and legal fees in the next three years."
The bank has now set aside £3.8bn to cover other aspects of RMBS and billions more for other misdemeanours.
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