£95m settlement over sub-prime securities for RBS

£95m settlement over sub-prime securities for RBSStandard & Poor's downgraded The Royal Bank of Scotland  and its core operating subsidiaries to A-/A-2, from A/A-1.

It  also gave the bank a "negative outlook".

RBS has expressed disappointment after its credit ratings were downgraded by Standard & Poor's .

S&P mentioned in a statement "The lowering of the ratings reflects our view of the changes that RBS has announced to its restructuring plan, which include the creation of an internal 'bad bank' and the accelerated disposals of higher-risk assets."

RBS announced significant changes to its restructuring plan earlier this week which included the creation of an internal `bad bank' to house its riskiest assets, following a review by HM Treasury.

The RBS revealed that it has agreed on a $153.7m (£95.5m) settlement with the US Securities and Exchange Commission to end its enquiry into alleged mis-selling of residential mortgage backed securities in 2007.

The RBS is not the only one to come under fire over sub-prime securities. US bank JPMorgan Chase has struck a $13bn to settle disputes with regulators and institutional investors.

HSBC admitted in its quarterly results in August it may have to pay $1.6bn (£1bn) in damages to the US regulator.

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