RBS close to US mortgage mis-selling settlement

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Royal Bank of Scotland is set to strike a deal over historic mortgage bond mis-selling and clear one of the last hurdles to the Government selling its stake in the lender.

The bank is close to a settlement with the US Federal Housing Finance Agency over mis-selling Fannie Mae and Freddie Mac loans before 2008, according to Sky News.

The deal could cost RBS $4.5bn (£3.5bn) and is set to finish within a fortnight.

An RBS spokesman would not comment.

The bank is still more than 70 per cent owned by the UK Government following a 2008 bailout.

RBS is also due to settle another penalty with the US Department of Justice about historic sales of residential mortgage-backed securities.

However, this has been held up by a cull of the department’s top brass under US President Donald Trump.