May 10, 2018 | Bloomberg Royal Bank of Scotland Group Plc cleared one of the last barriers keeping the U.K. from reducing its stake in the lender and resuming dividends after it reached a tentative deal to pay $4.9 billion to resolve a U.S. mortgage probe.
Top executives said the U.K.’s biggest government-owned bank will begin discussions with British regulators about restarting dividends after a decade.
“The investment case for this bank is much clearer,” RBS Chief Executive Officer Ross McEwan said on a call with reporters on Thursday. This is “a milestone moment to restore capital distribution,” he said.
A preliminary settlement with the U.S. Department of Justice makes it easier for the U.K. government to attract buyers for its approximate 70 percent stake after bailing out RBS during the financial crisis. Chancellor of the Exchequer Philip Hammond welcomed the agreement in principle. “It marks another significant milestone in RBS’s work to resolve its legacy issues, and will help pave the way to a sale of taxpayer-owned shares,” he said in a statement. Read more here.