Europe

Royal Bank of Scotland sets aside $3.8 billion for fines

Taxpayer-owned Royal Bank of Scotland says it has set aside an additional $3.8 billion to cover fines and litigation costs related to its sale of bonds backed by U.S. subprime mortgages before the global financial crisis.

The decision pushes provisions for the sale of such securities to $8.3 billion. RBS says it remains in talks with the U.S. Justice Department regarding its investigation into residential mortgage-backed securities and "substantial" additional provisions are possible.

CEO Ross McEwan says "putting our legacy litigation issues behind us" is a key priority.

RBS announced the decision before markets opened Thursday in London.