RBS shares rise after £845m deal to settle mis-selling claims

SHARES in Royal Bank of Scotland edged up by one per cent after the state-owned lender agreed to pay $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 taxpayer-backed lender reached the agreement with the National Credit Union Administration Board, which regulates credit unions in America.

RBS sold the mortgage securities to the US Central Federal Credit Union and Western Corporate Federal Credit Union, but the bonds later proved toxic and failed after the US housing bubble burst in 2008.

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

Shares in RBS closed up 1.8p, or 1.03 per cent, at 176.4p.