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The FT reports that RBS chairman Sir Howard Davies sees obstacles ahead for the UK based lender with conduct and litigation issues near the top of the list. Such costs could in fact be substantially greater than the provisions already taken at RBS, it is reported. The probes include a US led investigation into RBS's past activities in mortgage-backed securities (or "MBS"). One court filing this summer indicated the bank faces up to $13 billion to settle the MBS related charges. Lesser litigation challenges include the bank's treatment of small business clients in the UK and the payment protection insurance mis-selling scandal. RBS is in the midst of a significant restructuring including exiting 25 of 38 markets. The banking twister game continues for many large lenders, not only RBS.
The FT reports that RBS chairman Sir Howard Davies sees obstacles ahead for the UK based lender with conduct and litigation issues near the top of the list. Such costs could in fact be substantially greater than the provisions already taken at RBS, it is reported. The probes include a US led investigation into RBS's past activities in mortgage-backed securities (or "MBS"). One court filing this summer indicated the bank faces up to $13 billion to settle the MBS related charges. Lesser litigation challenges include the bank's treatment of small business clients in the UK and the payment protection insurance mis-selling scandal. RBS is in the midst of a significant restructuring including exiting 25 of 38 markets. The banking twister game continues for many large lenders, not only RBS.
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