UPDATE 2-RBS sets aside $4 bln for ‘painful legacy ‘ of US loan mis-selling

LONDON, Jan 26 Royal Bank of Scotland has taken a 3.1 billion pound provision as it prepares to settle claims in the United States that it mis-sold toxic mortgage-backed securities in the run up to the 2008 financial crisis. The provision means that state-backed RBS is unlikely to make a profit in 2016, the ninth straight year the bank has failed to make an annual profit.