Royal Bank of Scotland Group Plc reached anagreement with the U.S. National Credit Union Administration to pay $1.1billion to resolve two outstanding civil lawsuits claiming that it missold RMBSto now-defunct U.S. CentralFederal Credit Union and Western Corporate Federal Credit Union in the run-up tothe 2008 financial crisis.
The bank said Sept. 27 that the settlement,which involves unit RBSSecurities Inc., is "substantially covered" by as of June30 and will have no material impact on the group's common equity Tier 1 ratio.
The bank added that it continues to facevarious other RMBS-related civil claims, including those of the Federal HousingFinance Agency, as well as investigations by the U.S. Department of Justice andvarious other members of the RMBS Working Group of the Financial FraudEnforcement Task Force, which may require additional provisions that couldexceed its existing provisions.
In 2015, RBS agreed to pay $129.6 million to settle a separate case withNCUA. The recent settlement brings the credit union regulator's recoveriesagainst various financial institutions to $4.3 billion, the NCUA said the sameday.
NCUA is still pursuing lawsuits against otherfinancial institutions, including Credit Suisse Group AG and , for similar complaints.
In connection with the settlement, NCUA willdismiss its pending suits against RBS, which has not admitted fault in thesettlement.