The past comes back to haunt the Royal Bank of Scotland

RBS said it would set nearly $5 billion to cover litigation losses tied to mortgage-backed securities and other assets sold before the financial crisis began

The mistakes of the 2008 financial meltdown still weigh heavy on the Royal Bank of Scotland today. At the time, the bank was bailed out by the British government and claimed it would set aside three billion pounds, or about $4.97 billion, to cover litigation claims related to mortgage-backed securities.

RBS is now singing a different tune. As a result of the financial crisis, eight top executives of the bank will not receive bonuses for 2013, The New York Times reported. The bank’s CEO Ross M. McEwan said that he will not take a bonus for 2013 and 2014. “We have to show we take accountability seriously,” McEwan said in a statement.

Contributing Author

author image

Amanda Ciccatelli

Amanda G. Ciccatelli is a Contributing Writer for InsideCounsel, where she covers the patent litigation space. Amanda earned a B.A. in Communications and Journalism from...

Bio and more articles

Join the Conversation

Advertisement. Closing in 15 seconds.