RBS Allocates another £3Bln for Credit Crisis losses, warns on further losses
January 27, 2014 9:20 pm
80% taxpayer owned bank, Royal bank of Scotland (RBS.L) released news near the end of trading today detailing its plans to set aside another £3.1Bln to pay for fines, damages and customer compensation relating to the credit crisis and market rigging allegations.
Boss Ross McEwan said “The scale of the bad decisions during that period means that some problems are still just emerging.”
The bank plans to allocate:
£1.9bn to pay for fines and damages relating to mis-selling mortgage bonds in the US, as well as other penalties relating to market manipulation
£650m of losses for mis-selling payment protection insurance (PPI)
£500m of losses for compensating small businesses who were wrongly sold interest rate hedging products
The bank also warned there could be another £4.5Bln losses on bad debts, loans and assets and this could mean a full year loss totaling £8Bln.
Commenting on the news, the Business Secretary Vince Cable said: “It’s an absolutely shocking story that the British taxpayers are still paying for the excesses of this bank in the boom period before it collapsed.”
80% taxpayer owned bank, Royal bank of Scotland (RBS.L) released news near the end of trading today detailing its plans to set aside another £3.1Bln to pay for fines, damages and customer compensation relating to the credit crisis and market rigging allegations.
Boss Ross McEwan said “The scale of the bad decisions during that period means that some problems are still just emerging.”
The bank plans to allocate:
The bank also warned there could be another £4.5Bln losses on bad debts, loans and assets and this could mean a full year loss totaling £8Bln.
Commenting on the news, the Business Secretary Vince Cable said: “It’s an absolutely shocking story that the British taxpayers are still paying for the excesses of this bank in the boom period before it collapsed.”
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