RBS may seek more after $100 mn Goldman payout

LONDON: Royal Bank of Scotland may pursue Goldman Sachs for hundreds of millions of dollars to add to $100 million it received as part of a settlement over the marketing of a subprime mortgage product.

RBS said on Friday it would "carefully consider all of its options" after Goldman agreed on Thursday to pay it $100 million as part of a $550 million payment to settle civil fraud charges over how it marketed the subprime mortgage product.

RBS declined to comment on whether it would sue Goldman for the remaining cash, but some investors have urged it in the past to pursue civil action and Goldman said in a statement late on Thursday that its marketing materials for the Abacus 2007-ACI transaction contained incomplete information.

RBS is 83 per cent state owned and former UK Prime Minster Gordon Brown said in April that Goldman would have to pay back "hundreds of millions of dollars" if the charges against it are proven.



The US Securities and Exchange Commission said the penalty left the door open for future civil suits.