Royal Bank of Scotland (RBS) shares surged Tuesday after a report suggested the British bank is on the verge of agreeing a multi-billion settlement with a U.S. regulator over the sale of mortgage backed securities during the financial crisis.
Britain’s Sky News reported that RBS and the Federal Housing Finance Agency (FHFA) are nearing a settlement that could cost the bank as much as £3.5 billion ($4.5 billion), enabling the bailed out lender to put some of its mortgage backed securities legacy behind it.
