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| RBS puts aside further £3.1bn for US mortgages fine | RBS puts aside further £3.1bn for US mortgages fine |
| (35 minutes later) | |
| Royal Bank of Scotland has set aside a further $3.8bn (£3.1bn) to cover fines in the US, the bank has said. | Royal Bank of Scotland has set aside a further $3.8bn (£3.1bn) to cover fines in the US, the bank has said. |
| The provision is for an expected penalty over the sale of financial products linked to risky mortgages before the 2008 financial crisis. | |
| RBS, which is 72%-owned by the government, has now put £6.7bn aside to cover US litigation. | |
| It means the bank is set to report a loss for 2016, the ninth year in a row that RBS has lost money. | |
| Ross McEwan, RBS's chief executive, said: "Putting our legacy litigation issues behind us, including those relating to US residential mortgage-backed securities, remains a key part of our strategy. | |
| "It is our priority to seek the best outcome for our shareholders, customers and employees." | |
| RBS's potential US penalty could fall anywhere between $12bn and $20bn, experts say. | |
| It remains to be seen whether the new US administration takes a tougher or more lenient approach to misconduct by European banks. | |
| RBS said the "duration and outcome" of the investigations into its mortgage selling activities before 2008 were uncertain - including whether a settlement with the Department of Justice could be reached. | |
| It also said that "further substantial additional provisions and costs may be recognised" and that other "adverse consequences may occur". |