The Royal Bank of Scotland has agreed to a $500m (£359.7m) settlement with New York State over the mis-selling of financial products in the lead up to the 2008 global financial crisis.
RBS is the sixth bank to settle with the state over similar claims, linked to risky mortgages.
The agreement will see the bank pay $400m in relief to homeowners, as well as $100m to the state.
RBS still faces a potentially massive fine from the US Department of Justice.
The bank said last month that it had put aside £3.2bn ($4.4bn) to cover upcoming settlements with the US and others.
The sale of the risky mortgage-backed securities had contributed to a housing price crash during the financial crisis, the New York attorney general’s office said.
“While the financial crisis may be behind us, New Yorkers are still feeling the effects of the housing crash,” said state attorney-general Eric Schneiderman.
“Today’s settlement is another important step in our comprehensive effort to help New Yorkers rebuild their lives and communities.”
RBS is majority owned by the UK government. It has been trying to return to financial health since the financial crisis, when it was bailed out for tens of billions of pounds.
The bank said last month that it had returned to profit for the first time in ten years.