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Goldman Sachs agrees record $550m fine

16 July 2010 Last updated at 13:49 BST

The American bank Goldman Sachs has been handed the biggest fine ever imposed on an American bank.

The charges concerned Goldman's marketing of mortgage investments as the US housing market faltered.

US finance watchdog the Securities and Exchange Commission said it was the biggest fine for a bank in its history.

The UK's Royal Bank of Scotland, which is now 84% owned by the UK taxpayer and lost about $840m in investments, will receive $100m compensation.

Matt Prodger reports.