Menu
03/04/2013
Investors Submit £3.5bn RBS Compensation Claim
Thousands of investors have launched a joint compensation claim against the Royal Bank of Scotland.
The claim is for more than £3.5bn.
The group claims the bank deliberately misled its shareholders into believing it was in good financial health, just before the organisation collapsed in 2008.
It is understood more than 12,000 private shareholders as well as 100 institutional investors have raised a class action against the bank.
They are also suing former RBS executives, including ex-Chief Executive, Fred Goodwin, and former chairman Sir Tom McKillop. They were senior figures at the bank in 2008.
The institutions involved in the class action are understood to include 20 charities as well as churches, pension funds, hedge funds, fund managers and private client brokers. Collectively, they manage in excess of £200bn.
In a statement, the investors said: "The action group maintains that the bank's directors sought to mislead shareholders by misrepresenting the underlying strength of the bank and omitting critical information from the 2008 rights issue prospectus.
"This means that RBS will be liable for the losses incurred on shares subscribed in the rights issue, by reason of breaches of Section 90 of the Financial Services and Markets Act 2000."
The action group estimated that the final claim may be as much as £4bn.
The bank has 30 days to respond to the claim.
RBS was saved from collapse in 2008 by a UK government bailout and is now 82% owned by the taxpayer.
(JP/CD)
The claim is for more than £3.5bn.
The group claims the bank deliberately misled its shareholders into believing it was in good financial health, just before the organisation collapsed in 2008.
It is understood more than 12,000 private shareholders as well as 100 institutional investors have raised a class action against the bank.
They are also suing former RBS executives, including ex-Chief Executive, Fred Goodwin, and former chairman Sir Tom McKillop. They were senior figures at the bank in 2008.
The institutions involved in the class action are understood to include 20 charities as well as churches, pension funds, hedge funds, fund managers and private client brokers. Collectively, they manage in excess of £200bn.
In a statement, the investors said: "The action group maintains that the bank's directors sought to mislead shareholders by misrepresenting the underlying strength of the bank and omitting critical information from the 2008 rights issue prospectus.
"This means that RBS will be liable for the losses incurred on shares subscribed in the rights issue, by reason of breaches of Section 90 of the Financial Services and Markets Act 2000."
The action group estimated that the final claim may be as much as £4bn.
The bank has 30 days to respond to the claim.
RBS was saved from collapse in 2008 by a UK government bailout and is now 82% owned by the taxpayer.
(JP/CD)
Related UK National News Stories
Click here for the latest headlines.
05 May 2011
Bank Of England Maintains Bank Rate At 0.5%
The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion. The previous change in Bank Rate was a reduction of 0.5 percentage points to 0.
Bank Of England Maintains Bank Rate At 0.5%
The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion. The previous change in Bank Rate was a reduction of 0.5 percentage points to 0.
18 August 2009
Strike May Hit Bank Holiday Air Travellers
Airports may be left in chaos should proposed industrial action get the go-ahead. As the August Bank Holiday weekend looms, travellers may be facing the nightmare of both baggage handlers and check-in staff refusing to work. The dispute is set to hit all three of the UK's busiest airports where staff are being balloted for industrial action.
Strike May Hit Bank Holiday Air Travellers
Airports may be left in chaos should proposed industrial action get the go-ahead. As the August Bank Holiday weekend looms, travellers may be facing the nightmare of both baggage handlers and check-in staff refusing to work. The dispute is set to hit all three of the UK's busiest airports where staff are being balloted for industrial action.
07 November 2013
Bank Of England Maintains Bank Rate At 0.5%
The Bank of England's Monetary Policy Committee has voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £375bn.
Bank Of England Maintains Bank Rate At 0.5%
The Bank of England's Monetary Policy Committee has voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £375bn.
05 August 2013
Met Reach Out-Of-Court Settlement With Family Of Ian Tomlinson
The family of Ian Tomlinson have reached an out-of-court settlement with the Metropolitan Police over his death in London in 2009. Mr Tomlinson died shortly after being struck with a baton and pushed to the ground by a riot officer during G20 protests in the city. Mr Tomlinson was not involved in the protests and was just making his way home.
Met Reach Out-Of-Court Settlement With Family Of Ian Tomlinson
The family of Ian Tomlinson have reached an out-of-court settlement with the Metropolitan Police over his death in London in 2009. Mr Tomlinson died shortly after being struck with a baton and pushed to the ground by a riot officer during G20 protests in the city. Mr Tomlinson was not involved in the protests and was just making his way home.
15 October 2015
New BoE And Financial Services Bill Published
The government has published a new Bank of England and Financial Services Bill, aimed at strengthen the governance and accountability of the Bank, update resolution planning and crisis management arrangements between the Bank and Treasury, and extend the principle of personal responsibility to all sectors of the financial services industry.
New BoE And Financial Services Bill Published
The government has published a new Bank of England and Financial Services Bill, aimed at strengthen the governance and accountability of the Bank, update resolution planning and crisis management arrangements between the Bank and Treasury, and extend the principle of personal responsibility to all sectors of the financial services industry.
-
Northern Ireland WeatherThis Evening and Tonight:It will be cloudy with a spell of heavy rain pushing south through late evening and the early hours, soon followed by some clear spells. Minimum temperature 6 °C.
