Royal Bank of Scotland (RBS) agreed to a $5.5 billion fine paid to U.S. regulators as part of an investigation into the bank's selling of mortgages to Freddie Mac (FMCC) and Fannie Mae (FNMA) prior to the financial crisis, Sky News reported.
RBS will pay the fine to the Federal Housing Finance Agency. It has yet to come to a separate settlement with the U.S. Department of Justice, which could push for another fine even higher than this one.
CEO Ross McEwan said solving this "legacy matter" is a "stark reminder of what happened to this bank before the financial crisis, and the heavy price paid for its pursuit of global ambitions." The bank is now more U.K.-focused than it was pre-crisis.
RBS shares traded up premarket.
What's Hot On TheStreet
Money is just being given away: Warren Buffett donated roughly $3.17 billion of Berkshire Hathaway Inc. (BRK.A) (BRK.B) stock earlier this week to the Bill and Melinda Gates Foundation and four family charities.
It is the 86-year-old billionaire's largest contribution in his plan to give away his fortune. In 2010, Buffett, Microsoft Corp. (MSFT) co-founder Bill Gates and his wife created The Giving Pledge, a project that encourages billionaires to give more than half of their wealth to philanthropy. TheStreet takes a look at some of the wealthiest people who have pledged to give their money to charity when all is said and done.
A return of a bothersome issue for Walmart: Beginning in 2013, reports began circulating that Walmart Stores Inc. (WMT) was dealing with an out-of-stock issue at its stores nationwide.
At the time, Walmart attributed the problem to a reduction in employees as it worked to cut costs. Fast forward to 2017, and the issue appears to be resurfacing, reports TheStreet's Lindsay Rittenhouse.
The purchase of Square would give PayPal increased acceptance with bricks and mortar retailers, Loop Capital analyst Joseph Vafi writes in a new note. All in, the deal would further PayPal's efforts to become a "true, two sided network," according to Vafi.
Vafi estimates PayPal would be able to pay a 30% premium for Square, valuing the company at more than $12 billion using current prices.
Tesla gets some more love: Shark Tank Star Kevin O'Leary said Tesla (TSLA) CEO Elon Musk is a modern day Michelangelo. "He is a genius - I can't say enough good things about what he does for all sectors that he gets involved in," O'Leary told TheStreet's Scott Gamm in an interview.
Although to be fair, O'Leary is more fond of Tesla's product than its stock.
"I'm an investor and at the end of the day, I look at each opportunity to put money in harms way - one stock at a time and that's not a stock I own," he said. O'Leary is also the Chairman of O'Shares ETF Investments.
Visit here for the latest business headlines.