By Jonathan Davies

The Royal Bank of Scotland (RBS) saw its shares fall by as much as 1.2% in early trading on Friday as speculation over a possible $5bn US fine intensified.

Reports from various media organisations have suggested that RBS could be set to face a $5bn fine over its involvement with the sale of 'toxic' mortgage-backed securities in the US.

The taxpayer-owned bank has already set aside £1.9bn to cover the costs, but senior sources are understood to be expecting a much larger finer.

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