UK bank RBS is facing full-year losses of around $13.2 billion after it revealed a further $5.1 billion for claims relating to mortgage products, PPI claims and interest rate hedging.
Ross McEwan, the boss of the financial institution, which is partly owned by UK taxpayers, explained that bad decision making during the financial crises means that some problems that need to be dealt with are only just emerging
RBS chairman Philip Hampton said: "RBS did suffer more than most banks in the crisis and these charges today represent an extra clearing-up of the mess that was created in the bank in the run-up to the financial crisis of 2008."
The bank did confirm that its executive committee would not receive a bonus for 2013 and Mr McEwan has waived his bonus for 2013-14.
RBS has come under fire from business secretary Vince Cable, who claimed that it is "absolutely shocking".
In 2008, the UK government bailed out RBS with $76 billion of public funds, and now owns 81 per cent of the bank, however questions have been raised as to whether the government will be able to recoup taxpayers' money in the future.
By Gary Cooper