RBS might book charge for US RMBS litigation in Q4, report says

19th Jan 2017 14:23

(ShareCast News) - State-owned RBS might book a charge for expected litigation charges stemming from the US Department of Justice´s probe into its role in that country´s sub-prime mortgage meltdown which ensued during the last financial crisis as soon as in its fourth quarter eanings statements.Booking a charge early would limit the negative impact the eventual penalty might have on its 2017 financial accounts and give an indication as to the amount of the full settlement, according to people with knowledge of the matter, Bloomberg reported.For 2016 on the other hand, RBS was already on track to register a full-year loss.The size of the provision would take Deutsche Bank´s $7.2bn settlement with the DoJ and the $5.3bn paid by Credit Suisse´s as its starting point.As of 1541 GMT, shares in RBS were higher by 0.50% to 220.1p.