RBS putting aside US$2.8 billion for misconduct and legal action


LONDON — The Royal Bank of Scotland says it is putting aside some 2 billion pounds (US$2.8 billion) as the taxpayer-owned institution continues to tally the costs of misconduct and legal claims.

In an unscheduled trading update Wednesday, the bank also said it would inject 4.2 billion pounds into its pension funds because of accounting changes.

Cash was set aside for legal claims in the United States regarding toxic mortgage-backed bonds. More money was also set aside for compensation in the scandal surrounding consumers who were improperly sold payment protection insurance.

CEO Ross McEwan says the bank will “move further and faster in 2016 to clean up the bank and improve our core businesses.”

The bank was bailed out during the 2008 financial crisis. It remains 73-percent owned by the British taxpayer.