LONDON xx (Reuters) - Royal Bank of Scotland will pay $5.5 billion to settle one of the two major U.S. investigations into allegations it mis-sold mortgage-backed bonds that it needs to resolve before the government can sell its shares in the bailed-out bank.
The Edinburgh-based bank lender on Wednesday said it agreed to settle the lawsuit with the U.S. Federal Housing Finance Agency (FHFA) that accuses it of mis-selling $32 billion of mortgage-backed securities before the global financial crisis.
Analysts had previously estimated RBS would have to pay between $3.5 to $5 billion to settle the case with the FHFA.
($1 = 0.7723 pounds)
(Reporting By Andrew MacAskill; editing by Simon Jessop)
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