RBS coughs up on claims

ROYAL Bank of Scotland is to pay US $1.1 billion (£845 million) to a US regulator to settle two claims over mis-sold mortgage bonds in the run-up to the financial crisis.

The lender reached the agreement with the National Credit Union Administration Board, which regulates credit unions in America.

RBS sold the mortgage securities to two US credit unions, but the bonds later proved toxic and failed after the US housing bubble burst in 2008.

The bank, which does not admit fault, said the settlement is “substantially” covered by the £3.8 billion already put aside to cover forthcoming litigation.