RBS could face $13bn bill in US case over pre-2008 behaviour

[unhappycamper]

http://www.theguardian.com/business/2015/jul/02/rbs-could-face-13bn-bill-in-us-case-over-pre-2008-behaviour

Case in Connecticut court relates to the way 79% taxpayer-owned bank packaged up mortgage bonds and sold them to government lenders

RBS could face $13bn bill in US case over pre-2008 behaviour
Jill Treanor
Thursday 2 July 2015 13.01 EDT

Royal Bank of Scotland has been warned in a US court that it could face a $13bn (£8.3bn) bill in a case making allegations about its behaviour before the 2008 crisis.

The 79% taxpayer-owned bank is fighting a long-running case in a Connecticut court relating to the way it packaged up mortgage bonds and sold them to government lenders overseen by the Federal Housing Finance Agency.

The FHFA brought the case in 2011 and it is yet to go to trial, although RBS has made repeated references to the legal proceedings in its disclosures to shareholders in its annual report.

Analysts have been estimating a potential cost for the Connecticut action but until now a potential figure had not been put on the size of the suit, uncovered by Bloomberg which looked at recent filings related to the case.