RBS to pay another $5 billion to settle DOJ toxic mortgages probe

Big banks are raking in monster profits
Big banks are raking in monster profits

The Royal Bank of Scotland has already paid out billions to settle one investigation into its alleged sale of toxic mortgages before the global financial meltdown in 2008. Now, it’s paying billions more in a bid to draw a line under the crisis.

The British bank has reached an agreement “in principle” with the US Department of Justice to end the department’s investigation into allegations it sold risky loans worth billions between 2005 and 2007, it said in a statement on Thursday.