RBS puts RMBS woes behind it, draining capital

RBS put to bed its legal saga over the miss-selling of retail mortgage-backed securities (RMBS) by agreeing a £3.7 billion ($4.9 billion) settlement with the Department of Justice in the second quarter. The payment sapped 50 basis points from its Common Equity Tier 1 (CET1) capital ratio at end-June. 

Of the settlement amount, £2.7 billion was covered by existing provisions and the remainder by an additional charge taken in the second quarter.

The resulting 50bp reduction in the bank’s CET1 c

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