LONDON (Reuters) - Britain’s Royal Bank of Scotland (RBS.L) could reach a multi billion-dollar settlement with the U.S. Department of Justice (DoJ) over its mis-selling of toxic mortgage-backed securities within weeks, Sky News reported on Friday, citing sources.
The bank is due to hold formal negotiations with the DoJ this month and a figure significantly higher than the $3.5 billion RBS has set aside to cover the fine is on the table for the first time, the media organization said.
RBS declined to comment. The bank had expected to have reached a deal over its last large remaining legacy issue already, but this has been delayed, weighing on its share price and complicating the government’s plan to sell down its stake in the bank.
Reporting by Emma Rumney, editing by Lawrence White