UK officials fear fresh wave of banking scandals at RBS

The chairman of UK Financial Investments, the body responsible for the government's stake in RBS and Lloyds, has warned the former could face further fines from regulators over sales linked to the US sub-prime mortgage crisis.

Robin Budenberg, who joined UKFI in 2010 from UBS, told the Treasury Select Committtee (TSC) on Tuesday that while it was difficult to estimate future liabilities, potential fines had formed a "fundamental part of discussions" between the RBS board and the Bank of England's Prudential Regulation Authority, the Telegraph reports. Making reference to J.P. Morgan, which last month agreed to pay $5bn to settle a string of legal cases relating to sales of mortgage-backed securities, Mr Budenberg said mortgage trading was one of the outstanding issues RBS faced. "It is clear that the PRA is...