US Fines Royal Bank Of Scotland Record $5Bln For Financial Crisis Conduct - Justice Dept.

WASHINGTON (UrduPoint News / Sputnik - 15th August, 2018) The Royal Bank of Scotland (RBS) has accepted a $4.9 billion penalty to resolve US civil claims over the sale of mortgage securities which led to the 2008 global financial crisis and subsequent Great Recession, the Department of Justice announced in a press release on Tuesday.

"This resolution - the largest of its kind - holds RBS accountable for defrauding the people and institutions that form the backbone of our investing community," US Attorney for the District of Massachusetts said in the release.

"Despite assurances by RBS to its investors, RBSs deals were backed by mortgage loans with a high risk of default."

The bank used sketchy Residential Mortgage Backed Securities to push the risk of the loans, and tens of billions of Dollars in subsequent losses, onto unsuspecting investors across the world, including non-profits, retirement funds, and federally insured financial institutions, the release explained.