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RBS to pay $5.5 bln to resolve major U.S. mortgage probe
July 12, 2017 / 12:41 PM / 5 months ago

RBS to pay $5.5 bln to resolve major U.S. mortgage probe

LONDON, July 12 xx (Reuters) - Royal Bank of Scotland will pay $5.5 billion to settle one of the two major U.S. investigations into allegations it mis-sold mortgage-backed bonds that it needs to resolve before the government can sell its shares in the bailed-out bank.

The Edinburgh-based bank lender on Wednesday said it agreed to settle the lawsuit with the U.S. Federal Housing Finance Agency (FHFA) that accuses it of mis-selling $32 billion of mortgage-backed securities before the global financial crisis.

Analysts had previously estimated RBS would have to pay between $3.5 to $5 billion to settle the case with the FHFA. ($1 = 0.7723 pounds) (Reporting By Andrew MacAskill; editing by Simon Jessop)

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