RBS sets aside $5B for misconduct issues

Jan 27, 2014, 1:04 PM EST
RBS

Royal Bank of Scotland is taking billions of pounds in extra provisions to cover the cost of past misdeeds, it said on Monday, adding its top executives would not receive any bonuses on the bank's performance in the past year. The new provisions are a blow to new Chief Executive Ross McEwan, who is looking to turn around the fortunes of the part-nationalised lender which was the subject of a 45 billion pound ($74.6 billion) government rescue in 2008. In an unscheduled trading statement, the 81% taxpayer-owned bank revealed it would incur an extra £2.9 billion ($5 billion) of losses for conduct-related matters over the sub-prime mortgage crisis in the US and mis-selling of payment protection insurance and interest rate swaps.

Background 

RBS issues trading update [Document]

RBS takes new 3 bln stg hit for past misconduct issues [Reuters]

RBS Joins Deutsche Bank in Purging Bad News [WSJ]

Royal Bank of Scotland set to report up to £8bn losses for 2013 [The Guardian]

 

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