Britain’s RBS, 80% owned by the government, say it expects to settle with US regulators investigating alleged foreign exchange fraud and has upped its cash pot to pay the fine to nearly one billion euros.
This added to US restructuring costs means the bank turned a 614 million euro loss compared to a 1.65 billion euro profit a year ago.
Shares lost more than two percent on the news sending the price down to 342 pence. The government breaks even in the event of returning RBS to the market at 502 pence a share.
Two more investigations, into small business policy and mortgage-backed bonds, hang over the bank.