Royal Bank of Scotland (RBS) has been fined US$5.5bn (£4.2bn) in the US for misselling residential mortgage backed securities (RMBS) in the period preceding the 2008 global financial crisis.
Ross McEwan, the bank’s chief executive, commented: “This settlement is a stark reminder of what happened to this bank before the financial crisis, and the heavy price paid for its pursuit of global ambitions.
“Today’s announcement is an important step forward in resolving one of the most significant legacy matters facing RBS and is further evidence of the determination of the bank’s leadership to put our remaining issues behind us.”
The penalty, imposed by the Federal Housing Finance Agency, is one of several that the bank faces from US authorities over the sale of bonds with a potentially even heavier fine likely from the Department of Justice (DoJ). RBS has made a £6.6bn provision for misselling penalties.
The specialist commercial finance provider plans to make £50m additional funding available under its ‘Asset Heroes’ initiative.
Launched in late 2014 the Registry, which helps the exchange of know-your-customer information, will open membership to all supervised financial institutions.
The group said that it is the first Swiss private bank to enter the blockchain asset management market with the virtual currency.
The bank has partners with fintech GT Nexus to offer customers a digital commerce platform that manages complex processes.