RBS shareholders throw £2.4bn legal claim at Fred Goodwin

13 March 2012

RBSFred Goodwin is a nice, popular fellow isn't he? The general public hate him. The Queen hates him. The media hates him. And now, it seems, so do the shareholders and investors of the Royal Bank of Scotland.

They hate him so much that they've started a £2.4 billion legal claim against him and other former senior executives. Or 'cronies' if you prefer.

They claim that they've been led on a merry dance and been utterly misled over the financial performance of the RBS shortly before they invested their money into a bank that was going to need a £45 billion bailout.

The RBOS Shareholders Action Group, which has the support of 80 institutional investors as well as 7,400 private shareholders, has sent claim letters to 17 former directors who believe they were given inaccurate financial information before investing £12 billion.

Lawyers Bird & Bird will send the letters to Goodwin today, as well as former finance director Guy Whittaker, former chairman Sir Tom McKillop and former head of investment banking Johnny Cameron, among others.

Investors are apoplectic with rage that they weren't told about an alleged loan which the RBS received from the US Federal Reserve. It the loan had been made public, it would have allowed investors to decide to become part of a rights issue with the full knowledge of the situation.

If the RBS had announced the loan, this would have affected the share price which means that investors would've had to pay less for shares. The group of shareholders claim that Goodwin publicly denied that a rights issue would be required to raise funds.

A spokesman for RBS said the group has “substantial and credible legal and factual defences” to the claims and will “defend itself vigorously.”

Is the Royal Bank of Scotland eating itself from the inside, out?

TOPICS:   Investments   Banking   Consumer Advice


  • Mike H.
    I would rather see that cunt raped by a team of angry gorillas.
  • Spencer
    you know rbs are just scapegoats for the industry dont you? It's just because they fell first and needed the bail-out that they landed under the microscope. And because of that all these 'revelations' about underhand behaviour come out... Senior bankers (like Fred and his 'cronies') are, by their very nature, Lying, self serving, corrupt, decietful scum. That's why they're senior bankers. If they were honest and fair - they'd be working behind the cash counters. Asking a banker to not be a corrupt parasite is like asking your postman to not put mail through the letter box. Are rbs senior staff dealings 'dubious'? - yes of course. So is the whole industry. the 'rbs' part could be exchanged for just about any high st bank chain.
  • samuri
  • Capability B.
    @ spencer: you work for RBS in some capacity, hon? You do sound like some kind of apologist. "honest and fair bank cashier" - employed by Halifax, which is part of Royal Bank of Scotland http://www.dailymail.co.uk/news/article-1365291/Crooked-bank-cashier-tells-judge-You-jail-violate-babys-human-rights.html You're not seriously saying that the bastards don't deserve it just because they "fell first"? (although I think that dubious honour goes to Barings). Whether they fell first or last, they are still thieving bastards. I refer m'learned friend to The Co-operative Bank, which hasn't had to take a penny in public handouts, was the first to expose Barclays' unethical dealings in South Africa and which was the first bank to invest all its customers' money ethically.
  • Capability B.
    i demand to know why, having made a complaint to your editor that people were posting using my name a while back, it is now MY comments that are being moderated.
  • Boris
    Worry not Capability - even the finest of us get moderated. The comment system is truely broken and selects posts to go missing at random. The moderation system seems to be new and equally as bad. Links and email seem to offend most. Did you swear? Fucking swearing seems to actually reduce the chances of getting moderated? Silly cunts eh?
  • Capability I.
    Me too!
  • Capability I.
    Hey, don't drag me into this.

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