RBS to pay $1.1bn to resolve some US mis-selling claims

Royal Bank of Scotland (LSE: RBS.L - news) has agreed to pay $1.1bn (£845m) to a US regulator to settle two claims it mis-sold mortgage bonds in the run up to the financial crisis.

The taxpayer-backed bank sold mortgage securities to two credit unions in the US, but the bonds failed after the housing bubble burst in 2008.

The resolution - with the National Credit Union Administration Board - comes as RBS prepares to settle a number of similar cases in the US.

Claims are still outstanding with the Federal Housing Finance Agency and the Department of Justice. Experts believe that these could cost RBS $9bn.

The bank does not admit any fault as part of the settlement, but said the payout was "substantially" covered by a £3.8bn pot set aside to cover litigation.

RBS boss Ross McEwan said the bank was working to resolve various mortgage bond claims over the remainder of this year and next.

The bank, which is 73% owned by the Government, suggested that it may be forced to set more cash aside to pay for the ongoing lawsuits.