PUNISHED: The US government alleges RBS misled investors in underwriting and issuing residential mortgage-backed securities, understating the risks behind many of the loans and providing inaccurate data. Picture: BLOOMBERG/SIMON DAWSON
PUNISHED: The US government alleges RBS misled investors in underwriting and issuing residential mortgage-backed securities, understating the risks behind many of the loans and providing inaccurate data. Picture: BLOOMBERG/SIMON DAWSON

Royal Bank of Scotland will pay $4.9bn to settle US claims that it misled investors on residential mortgage-backed securities between 2005 and 2008, the US justice department said. The department said the penalty is the largest-ever imposed on a bank for misconduct leading up to the financial crisis. The bank in May said that it had reached the settlement in principle.

Corona owner invests in more than cannabis in a can

Corona beermaker Constellation Brands will infuse another $4bn into Canada’s top cannabis producer, Canopy Growth. Constellation, among the first big alcohol makers to invest in the marijuana industry, pumped almost $200m into Canopy last year in a deal to produce a nonalcoholic cannabis-based beverage. The investment will support Canopy’s full suite of products and assist as it develops new offerings, said Constellation CEO Rob Sands.

Reuters