RBS reaches settlement with three investor groups demanding compensation
London — Royal Bank of Scotland (RBS) pledged Monday to pay up to $1bn to settle cases linked to a controversial 2008 shares sale conducted just before its state bailout. RBS, which is still 73% owned by the British government, said in a statement it had reached a "final settlement" with three out of the five investor groups that were bringing compensation claims against it over the matter. The Edinburgh-based lender has offered to pay up to £800m to resolve all the compensation claims, but it remains in discussions with the two other groups. The sum — which is covered by its existing provisions — represented 77% of the claims by value in the litigation. "In order to minimise further material litigation expense and management distraction and without any admission of liability, RBS has concluded a full and final settlement" with the three groups, it said in the statement. "Any claims for which settlement is not achieved will, however, continue to be vigorously defended. The trial for...
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