Royal Bank of Scotland Group PLC (RBS) is in advanced negotiations with the Federal Housing Finance Agency to cut a deal related to the 2008 sale of toxic mortgage bonds to U.S. government-backed loan firms Fannie Mae (FNMA) and Freddie Mac (FMCC) , SkyNews reported.
The settlement will cost RBS at least $4.5 billion.
RBS is also in formal settlement discussions with the U.S. Department of Justice over another residential mortgage-backed securities penalty. The settlement has been drawn out because of changes in DOJ senior officials under the Trump Administration.
RBS has not been profitable since 2007. Shares traded down almost 1% in mid afternoon trading.
What's Hot on TheStreet
Apple and all of tech remains in focus: European tech shares such as SAP SE (SAP) , Infineon Technologies AG (IFNNY) and ASML NV (ASML) fell sharply on Monday after last week's late Nasdaq rout. Not helping matters was a rare downgrade on Apple (AAPL) on Sunday on fears the stock may be too richly valued.
Walmart is under siege from a German rival: Aldi is coming after Walmart's (WMT) grocery market share, as the German discount retailer says it will invest $3.4 billion to expand its U.S. presence. The privately-held German grocery store said it plans to increase its store base to 2,500 by 2022. Aldi currently operates 1,600 U.S. stores.
GE's CEO is stepping aside: Industrial conglomerate General Electric (GE) said Jeffrey Immelt, chairman and CEO, plans to step down. Immelt has been with GE since 1982 and has served as chairman and CEO since September 2001. John Flannery, the current president and CEO of GE Healthcare, was named chairman and CEO. He will become CEO effective Aug. 1, and also take over the chairman role effective Jan. 1, 2018, a day after Immelt officially retires.
TheStreet reported last week that General Electric may sell additional businesses as investor Trian Partners pressured Immelt to meet aggressive performance targets.
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