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Royal Bank of Scotland takes another $5 bln charge
Royal Bank of Scotland sets aside another $5 billion to cover lawsuits, compensation claims
Associated Press
2014-01-28 03:01 AM

LONDON (AP) -- The Royal Bank of Scotland is setting aside an additional 3 billion pounds ($5 billion) in funds to cover U.S. litigation over mortgage-backed securities and customer compensation claims.

The bank, which is 80 percent owned by the British taxpayer, announced the decision in a trading statement issued a month ahead of its full year results next months.

Chief Executive Ross McEwan says the scale of the bad decisions made before the onset of the 2008 financial crisis is only now emerging and that while billions have been set aside to resolve litigation, "costs on this scale were not predicted by anyone when RBS was rescued in 2008."

The bank also said Monday said that eight executives will not take bonuses. McEwan had already said he wouldn't take a bonus.

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