RBS in talks over US probe settlements

Royal Bank of Scotland (RBS) is in talks to settle one of the two major US investigations into allegations it mis-sold mortgage-backed securities it needs to overcome before the British government can sell its shares in the bailed-out bank.

Chief executive Ross McEwan has been trying to clean up RBS’s balance sheet and end a string of legal cases against the bank. This would open the way for the British government to sell its more than 70% stake in RBS held since it had to step in with a more than £45bn bailout during the financial crisis.

Mr McEwan said the bank could settle a multibillion-dollar lawsuit by the US Federal Housing Finance Agency separately from an investigation by the Department of Justice, which has stalled because of changes in the US government since the election of Donald Trump.