RBS will Pay $500 Million in Settlement for Mis-Selling Mortgaged Backed Securities 10 years Ago

RBS will Pay $500 Million in Settlement for Mis-Selling Mortgaged Backed Securities 10 years Ago

Royal Bank of Scotland (RBS) has agreed to pay $500 million in settlement for deceptive practices and misrepresentations of residential mortgage-backed securities (RMBS) leading up to the financial crisis in 2008.  The settlement includes $100 million in cash to New York State and $400 million worth of consumer relief for New York homeowners and communities, including funds to spur construction of more affordable housing and to purchase distressed properties to prevent predatory investors.

” RBS to Pay $500 Million in Settlements “

RBS admitted it continued to package and sell to investors RMBS backed by mortgage loan, despite being warned by due diligence vendors the mortgage loans did not comply with underwriting guidelines, and applicable laws and regulations.  RBS had also securitised a large numbers of loans for which no diligence was performed.  Reviews conducted after the defaults of the mortgage loans showed serious problems in the origination of the loans and the originator.

The settlement was led by Attorney General Schneiderman, a key figure in recovering billions of settlements.  He is the co-chaired of the collaboration that includes Department of Justice (United States)  and other federal entities to investigate those responsible for misconduct contributing to the 2008 financial crisis for the pooling and sale of residential mortgage-backed securities.

Sources: Reuters, AG NY

 

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About Royal Bank of Scotland

Today’s RBS and its brands are made up of hundreds of past banks. They were all different – large and small, city and country, traditional and innovative – and grew to serve the banking needs of unique communities all over the United Kingdom. Each one has left its mark on our identity today.  The Royal Bank of Scotland was founded in Edinburgh in 1727. It went on to become one of the biggest banks in Scotland.

Visit: Royal Bank of Scotland

 


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RBS Preparing for a Multi Billion Dollar Fine from US Department of Justice

RBS Preparing for a Multi Billion Dollar Fine from US Department of Justice

Royal Bank of Scotland will be taking a £3.1bn hit for the cost of a toxic bond mis selling scandal in the US. This hit is going to cost them and push the bank into its ninth consecutive annual loss. The bank has already incurred £50bn of cumulative annual losses since taxpayers pumped in £45bn to keep it afloat.

“Royal Bank of Scotland will be taking a £3.1bn hit for the cost of a toxic bond mis selling scandal in the US.”

~ The Guardian

The bank is putting aside the money for a potential settlement cost with US Department of Justice over the way mortgages were packaged and sold in the 2008 financial crisis.

Related Reports: The Guardian, Sky News

 

About Royal Bank of Scotland

Today’s RBS and its brands are made up of hundreds of past banks. They were all different – large and small, city and country, traditional and innovative – and grew to serve the banking needs of unique communities all over the United Kingdom. Each one has left its mark on our identity today.  The Royal Bank of Scotland was founded in Edinburgh in 1727. It went on to become one of the biggest banks in Scotland.

Visit: Royal Bank of Scotland

 


The Wealth Insider is the world’s leading wealth intelligence for global wealth managers, investments managers, asset managers, high net-worth service providers and wealthy individuals.  Our global workforce seamlessly present the inside news of the most relevant news, insights, global wealth trends, innovation & digital transformation to our global audience.

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UK Banks Close Down 1000 Branches

UK Banks Close Down 1000 Branches

More than 1000 bank branches have closed down over the past 2 years as more customers have turned to mobile banking. HSBC has shut most outlets since 2015 reducing almost 30% of its network by closing down 321 branches.

“HSBC has shut most outlets since 2015 reducing almost 30% of its network by closing down 321 branches. “

~ Financial Times

Royal Bank of Scotland and Lloyds Banking Group shut 191 & 180 branches respectively. Banks have been cutting costs at a time when profits are being squeezed by record low interest rates. HSBC has seen the number of branch visits drop by 40% in the past five years and it intends to grow its mobile and online banking.

Related Reports: Financial Times, BBC

 

About HSBC

HSBC is one of the world’s largest banking and financial services organisations. With around 6,000 offices in both established and emerging markets, we aim to be where the growth is, connecting customers to opportunities, enabling businesses to thrive and economies to prosper, and, ultimately, helping people to fulfil their hopes and realise their ambitions.

We serve more than 47 million customers through our four Global Businesses: Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Global Private Banking. Our network covers 71 countries and territories in Europe, Asia, the Middle East and Africa, North America and Latin America. Listed on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by about 213,000 shareholders in 132 countries and territories.

Visit: HSBC

 


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More than 600 Branches Closed Over the Past Year in Britain

More than 600 Branches Closed Over the Past Year in Britain

More than 600 bank branches across Britain have closed over the past year. This report is based on data from the big six high street banks: Lloyds, Royal Bank of Scotland, HSBC, Santander, Barclays and the Co-operative.

“RBS has closed the most branches a total of 166, followed by HSBC with 146 over the past year.”

~ Telegraph

RBS has closed the most branches a total of 166, followed by HSBC with 146 over the past year. Banks say that advances in technology and changes to way people communicate have also led to branch closures. HSBC said 93pc of contact with the bank was via telephone, online banking or smartphones, while 97pc of cash withdrawals were made at an ATM.

Related Reports: Telegraph, BBC

 

About Lloyds

Since its foundation on 3 June 1765, Lloyds Bank has been serving the households, businesses and communities of Britain. And, in 2015 we’re celebrating 250 years of helping the people of Britain with the things that matter most to them.  We offer a comprehensive range of financial products and services – including current accounts, savings, mortgages, loans and credit cards.

Visit: Lloyds Bank

 

About Royal Bank of Scotland

 Today’s RBS and its brands are made up of hundreds of past banks. They were all different – large and small, city and country, traditional and innovative – and grew to serve the banking needs of unique communities all over the United Kingdom. Each one has left its mark on our identity today.  The Royal Bank of Scotland was founded in Edinburgh in 1727. It went on to become one of the biggest banks in Scotland.

Visit: Royal Bank of Scotland

 

About HSBC

HSBC is one of the world’s largest banking and financial services organisations. With around 6,000 offices in both established and emerging markets, we aim to be where the growth is, connecting customers to opportunities, enabling businesses to thrive and economies to prosper, and, ultimately, helping people to fulfil their hopes and realise their ambitions.  We serve more than 47 million customers through our four Global Businesses: Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Global Private Banking. Our network covers 71 countries and territories in Europe, Asia, the Middle East and Africa, North America and Latin America.  Listed on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by about 213,000 shareholders in 132 countries and territories.

Visit: HSBC

 

About Barclays UK

Barclays UK is a personal and business banking franchise with true scale, built around our customers’ needs with innovation at its core. It comprises our UK retail banking operations, our UK consumer credit cards business, our UK-based wealth offering, and corporate banking for smaller businesses. With around 22 million retail customers, and almost one million business banking clients, we are a pre-eminent UK financial services provider. This division will become our UK ring-fenced bank by 2019

Visit: Barclays

 

About Santander Bank

We are Santander Bank, N.A.– one of the country’s top retail banks by deposits and a wholly owned subsidiary of one of the most respected banks in the world: Banco Santander. Our parent company, Santander Group, serves more than 100 million customers in the United Kingdom, Latin America, and Europe. Here in the Northeast, we are a team of 9,800 individuals all committed to a single mission: to help you make progress toward your goals. We aim to make your banking hassle-free by providing simple ways for you to spend, save and manage your money.

Visit: Santander

 

About The Co-operative Bank

The Co-operative Bank provides high street and internet banking, current accounts, mortgages, savings accounts, credit cards and loans.  We trace our roots back to our founding as the Loans and Deposit department of CWS in 1872 and we’ve worked hard ever since to provide our customers with a viable alternative to our larger competitors.  We pride ourselves on our customer service and customer satisfaction levels, and we’re always looking to put our customers at the heart of what we do.

Visit: The Co-operative Bank




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