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Sancho Panza

No-One Charged Over Rbs Near Collapse

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Sky News 12/5/16

'No individuals, including former boss Fred Goodwin, are to face charges over events that sparked the near-collapse of Royal Bank of Scotland (RBS) at the start of the financial crisis.

The announcement was made by Crown Office prosecutors in Scotland following a five-year inquiry into whether shareholders were criminally wronged when the bank launched a £12bn cash call in 2008.

Its statement said: "The Crown's investigation focused on the rights issue of April to June 2008, and involved detailed consideration of whether there was any evidence of criminal conduct associated with the rights issue.

"Following careful examination of all the evidence seen to date, Crown counsel have decided that there is insufficient evidence in law of criminal conduct either in relation to RBS as an institution or any directors or other senior management involved in the rights issue.

"If any further evidence comes to light which is relevant to this inquiry it will be considered by the Crown and we reserve the right to make further inquiry, if considered appropriate."

The bank was run, at the time of the £12bn cash call to shareholders, by Sir Fred Goodwin who has faced no legal or regulatory sanction in connection with events that led to its bailout.

He lost his job at that time and was subsequently stripped of his Knighthood in 2012.

Goodwin earned the nickname 'Fred the Shred' for the bank's habit, during his tenure as chief executive, of aggressively cutting costs while also spending big on acquisitions, including the near-£50bn purchase of Dutch lender ABN Amro.

The deal proved toxic and, just months later, the value of RBS shares plunged 90% and the Government had to step in.

The bank went on to report a financial loss for 2008 of £24bn - the largest in corporate history. It remains loss-making as it continues to get its house in order.

The Government, which still owns 73% of RBS stock, has admitted it is likely to make a loss on the return of shares to private hands.

The Crown Office said its inquiry team had examined more than 160,000 documents and was assisted by financial regulators and banking institutions, including the Financial Conduct Authority, the Prudential Regulation Authority and the Serious Fraud Office.

An RBS spokesman said: "We cooperated fully with the investigation and we note today’s decision."

It could be viewed positively for groups representing former and current RBS shareholders who are pursuing civil claims worth £4bn against those in charge at the bank at the time of its rescue, as no criminal proceedings are risking delays to their case.'

So,nearly a decade later,160,000 docs examined.No charges.

Lots of taxpayer losses though.

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£45bn bailout + £50bn in losses since 2009 (thus far), written off without so much as a backwards glance.

The bank's executives all made out like bandits, while compulsive self-abusers at the FSA like Adair Turner and Andrew Bailey continue to dispense their 'informed' opinions on matters political and economic.

Gas them like badgers, I say. Gas them like badgers!

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"Its time to move on & get behind the banks" David Cameron

British "system" moves in mysterious (yet entirely predictable) ways

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Technically, leveraging up like a loon and going bust is not a crime.

Im happy Fred + rest being outside of jail providing everybit of money and assets was stripped from them.

The RBS pension should have be thrown in.

All salaries and bonuses from the previous 10 years should hve been clawed back.

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Compare and contrast the near fanatical zeal with which those who been overpaid various tax credits or benefits are hunted down and made to pay back every penny, even if they spent the money in good faith assuming it was theirs to spend.

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Compare and contrast the near fanatical zeal with which those who been overpaid various tax credits or benefits are hunted down and made to pay back every penny, even if they spent the money in good faith assuming it was theirs to spend.

Compare also with a job that requires real skill and personal responsibility like an aircraft tech for example. Make a mistake (for which there would be no personal gain) and cause a plane to fall out of the sky plod, beaky and the politicians will be after you and do everything in their power to bang you up in a cell. Also you would earn a fraction if not a single digit percentage of even the lower levels in the banking cartel.

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Technically, leveraging up like a loon and going bust is not a crime.

Im happy Fred + rest being outside of jail providing everybit of money and assets was stripped from them.

The RBS pension should have be thrown in.

All salaries and bonuses from the previous 10 years should hve been clawed back.

The main complaint I believe,was regarding the rights issue .

Edited by Sancho Panza

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Technically, leveraging up like a loon and going bust is not a crime.

02

Im happy Fred + rest being outside of jail providing everybit of money02 and assets was stripped from them.

02

The RBS pension should have be thrown in.

All salaries and bonuses from the previous 10 years should hve been clawed back.

so there was no miselling (fraud), no forex or rate rigging, no regulatory capture? an what about taxpayers bailing out private companies, were we consulted for our approval?

The shear scale must surely be listed under "crime of the epoc"

but as long as no one went to jail

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Wasn't intending to get involved on this thread, but I remember.

No one dragged anyone into paying up for the rights issue.

[.......]

The majority of RBS' shareholders have voted overwhelmingly in favour of its recent 12 billion pounds rights issue and strategy. They also voted McKillop back onto the main board.

While some shareholders have not been happy about the timing of the rights issue -- coming just three months after the bank told shareholders that a rights issue would not be necessary -- most have seen the rationale behind the cash call. The bank needs the cash to rebuild its reserves, which have taken a battering as a result of the credit crunch.

The Sunday Telegraph said fund management group Schroders are spearheading the latest push for boardroom changes. Insiders reportedly told the newspaper that fellow fund management group Morley is also at the forefront of the latest campaign.


Link : http://www.afxnews.c...p;story=2491752

Of course there's everything else including from what I remember about the due-diligence in the sizing up of the part of ABN AMRO they had bought leading up to the rights issue afterwards. :lol: How the fact Barclays had put in an offer previously, been played on minds.

As I recall Shredder saying about paying a premium for it...'Value always comes back around.' (ie it will go up in value)

Perhaps it does... HPC value.

Also as I understand it, the inquiry has been about the rights-issue, not about all the libor stuff that followed. Although perhaps the civil case can now see if rights-issue complainers can get anywhere. I personally doubt it.

November 2, 2015

Lloyds Banking Group has withdrawn its £420m claim against fellow bailed-out bank, the Royal Bank of Scotland.

In May 2014, it emerged that Lloyds was suing RBS for £420m as part of a wider “group litigation order” lawsuit over RBS’s allegedly “misleading” 2008 right issue.

[...]The Treasury is alleged to have been concerned that a high-profile legal spat between two partly state-owned banks would be “embarrassing” and interfere with its plans to return the banks to private ownership.

The Treasury has cut its stake in Lloyds from 43 per cent in 2008 to less than 10 per cent as of last week.

However a Treasury source denied any involvement in Lloyds’s decision to pull out of the action group, and sources close to Lloyds said it quit the group because litigation is progressing slowly.

Nine Lloyds investment and insurance entities filed papers in the High Court to sue RBS – Scottish Widows, Scottish Widows Unit Fund, Pensions Management (SWF), Scottish Widows Unit Trust Managers, Clerical Medical Investments Group, Halifax Life, Clerical Medical Management Fund, HBOS Investment Fund Managers and St Andrews Life Assurance.

At the time Lloyds said management of these insurance businesses had thought hard about “whether it was in the interests of policyholders to join the legal proceedings and decided that it was”.

The 34,000 claimants in the case, which include retail and institutional investors, allege that RBS, then led by Fred Goodwin, effectively duped them into investing £12 billion in RBS shares just weeks before the Gogarburn-based bank collapsed and needed a £45.5bn taxpayer bailout. Some 85 to 95 per cent of the money the claimants invested was lost.

http://www.scottishf...s-class-action/

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so there was no miselling (fraud), no forex or rate rigging, no regulatory capture? an what about taxpayers bailing out private companies, were we consulted for our approval?

The shear scale must surely be listed under "crime of the epoc"

but as long as no one went to jail

In the main, with RBS, no.

Just RBS buying loads, issuing loads of debt in a vainglorious attempt to be a big swinging dick.

Unfortunately, theres not law against being a moron, even a high paid one.

Forex/rates was other companies.

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In the main, with RBS, no.

Just RBS buying loads, issuing loads of debt in a vainglorious attempt to be a big swinging dick.

Unfortunately, theres not law against being a moron, even a high paid one.

Forex/rates was other companies.

on the contrary:

Nine major banks including Royal Bank of Scotland (RBS), HSBC and Barclays have settled a $2bn (£1.28bn) claim brought by investors in a US court for losses caused by the rigging of foreign exchange markets.

https://www.theguardian.com/business/2015/aug/14/forex-rigging-claim-settled-us-court-new-york-rbs-hsbc-barclays

RBS admits mis-selling Enterprise Finance Guarantee loans to small firms

http://www.businesszone.co.uk/do/money/rbs-admits-mis-selling-enterprise-finance-guarantee-loans-to-small-firms

RBS agrees £95m settlement over sub-prime misselling claims

https://www.theguardian.com/business/2013/nov/07/rbs-95million-settlement-sub-prime-claims

Royal Bank of Scotland (RBS) has been fined £390m ($610m) by UK and US authorities for its part in the Libor rate-fixing scandal.

http://www.bbc.com/news/business-21348719

I could fill this blog with rbs crimes.

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on the contrary:

Nine major banks including Royal Bank of Scotland (RBS), HSBC and Barclays have settled a $2bn (£1.28bn) claim brought by investors in a US court for losses caused by the rigging of foreign exchange markets.

https://www.theguardian.com/business/2015/aug/14/forex-rigging-claim-settled-us-court-new-york-rbs-hsbc-barclays

RBS admits mis-selling Enterprise Finance Guarantee loans to small firms

http://www.businesszone.co.uk/do/money/rbs-admits-mis-selling-enterprise-finance-guarantee-loans-to-small-firms

RBS agrees £95m settlement over sub-prime misselling claims

https://www.theguardian.com/business/2013/nov/07/rbs-95million-settlement-sub-prime-claims

Royal Bank of Scotland (RBS) has been fined £390m ($610m) by UK and US authorities for its part in the Libor rate-fixing scandal.

http://www.bbc.com/news/business-21348719

I could fill this blog with rbs crimes.

Thanks, evetsm. Saved me the trouble of doing it. Even by City standards, RBS is one of the most profoundly criminal organisations the UK has ever seen.

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