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Top Investors To File 1 Billion Pounds Legal Claims Against Rbs - Sources

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Five of Britain's biggest investors are set to file lawsuits against state-backed Royal Bank of Scotland (RBS.L) next week, saying they were misled over its massive rights issue in 2008 and claiming more than 1 billion pounds back, sources said.

Legal & General (LGEN.L) - the biggest investor in RBS at the time of the rights issue - and Standard Life (SL.L), Prudential (PRU.L), Aviva (AV.L) and Universities Superannuation Scheme (USS) are all expected to file claims in London's High Court on Wednesday, five people with knowledge of the matter told Reuters on Friday.

Former RBS boss Fred Goodwin asked shareholders to stump up 12 billion pounds in May 2008 to bolster the bank's capital position, which fell dangerously low after it bought parts of ABN Amro and lost billions on U.S. credit market assets.

Some of the lawsuits already filed against RBS over the rights issue also sue Goodwin, former chairman Tom McKillop and two other former executives. RBS is now being run by a new team and is 81 percent owned by the government, which still had to bail it out despite Goodwin's money-raising exercise.

I do hope that any court settlement wipes out Goodwins pension, if there are financial penalities for failure perhaps we might get better bankers.

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I think it was Mark Field MP Con City of London who said on radio today that full nationalisation was probably the right option in 2009.

He also suggested a utility bank for business lending be carved out of this giant turd. That's pretty much in line with Vince Cable's thinking.

Most criminal bank in history - well, apart from JP Morgan. And still being run by a member of the League of Sociopaths.

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So, they are basically trying to sue the new owners that bailed them out and left them with something rather than nothing. I would have thought a lawsuit by small investors pre rights issue against the large investors for repeatedly voting in dodgy management. If they are going after the management at the time its one thing, but legal arguments aside, I dont think a claim against the company (and therefore the current shareholders) as it is now has much moral merit, although I'm sure from a legal perspective there may be a case to argue.

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  • 406 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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