Royal Bank of Scotland is among the banks under investigation by New York’s top prosecutor over the sale of mortgage-backed bonds before the financial crisis.
RBS was first subpoenaed for information in 2007 Photo: Reuters
The UK taxpayer-backed bank was first subpoenaed for information in 2007 and met with officials from the New York Attorney General’s office last year, RBS said in its half-year results in August.
The investigation is one of several headaches for RBS chief executive Stephen Hester, who used a public lecture this week to admit the bank had been a “posterchild” for all that went wrong with UK banks.
Eric Schneiderman, the New York Attorney General, on Monday night filed a lawsuit against JP Morgan Chase alleging that Bear Stearns, which JP Morgan now owns, mis-sold billions of dollars of mortage-backed bonds in the run-up to the financial crisis.
Mr Schneiderman said on Tuesday that cases against other banks are likely to follow, raising speculation over the investigation into RBS.
RBS said in August that it is continuing to co-operate with the investigation.
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