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Business

Past misdeeds come back to haunt RBS

Opening sequence

Opening sequence

Business

Past misdeeds come back to haunt RBS

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COMING UP:Past misdeeds come back to haunt RBS

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Transcript

00:00:00
>> RBS in the red again, the British bank posting a loss of almost half a billion pounds in the third quarter. That's double the loss that analysts expected. Reuters banking correspondent, Lawrence White, says the bank's troubled past is catching up with it.>> So RBS made a loss for the quarter, basically, because of the mistakes of the past.
00:00:19
The underlying performance of the business is actually good. But conduct and litigation and restructuring costs, again, have hit them and erased any chance of making a profit for the quarter.>> RBS in the middle of a vast multi-year restructuring, asset sales and job cuts underway. Also multi-billion dollar charges to settle litigation over past regulatory breaches.
00:00:41
On the horizon, a penalty from the US Department of Justice that could be the biggest such fine in history.>> The markets have already seen what an unexpectedly large initial claim did to Deutsche Bank. And the worry is that RBS could similarly be hit with a big initial claim.
00:00:55
Chief Executive Ross McEwan was tight lipped on the call today, he didn't wanna talk about the coming settlement at all. But RBS at some point will have to disclose the negotiations with the DOJ.>> RBS still 70% owned by the UK taxpayer after its 2008 bailout. As long as the red ink keeps flowing, that's unlikely to change any time soon.