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RBS shareholders to sue bank and former chief exec Fred Goodwin

Royal Bank of Scotland shareholders are in talks with litigation funds over launching a potential £3.3bn lawsuit against the bank and former chief executive Fred Goodwin over an ill-fated rights issue in 2008.

According to reports, the shareholders, known as the RBoS Shareholders Action Group, are looking to sue the bank, Goodwin, former chairman Tom McKillop and former investment bank chief executive Johnny Cameron for allegedly misleading investors at the time of a £12bn rights issue in 2008.

Shareholders lost 90 per cent of their money after purchasing shares in the rights issue, according to Reuters. Shareholders claim they were mislead by the prospectus, which did not indicate the true strength of the bank. RBS was bailed out by the Government in 2008.

Reports state legal proceedings could start within weeks if the shareholder group manages to secure between £12m and £15m to pay for the cost of a potential defeat.


LV= signs protection advice deal with RAC

LV= has signed a five-year partnership with RAC to offer its customers a single-tie protection advice service. The provider will offer RAC customers telephone-based advice on its protection products, including critical illness and life cover, as well as issues such as inheritance tax planning. Customers will also be able to purchase term life and 50 […]

Labour wants ‘improved and more effective’ NewBuy

Labour is meeting with builders to explore ways to improve the Government’s NewBuy scheme with proposals expected soon. Speaking at a Westminster Social Policy Forum conference on housing this morning, shadow housing minister Jack Dromey said the impact of NewBuy has been “pretty modest”. He said: “We are meeting with a number of builders next […]

Northern Rock to launch two year product for one week only

Northern Rock is launching a 2.79 per cent two year fixed rate product for one week. The intermediary exclusive product will be available from tomorrow at up to 55 per cent LTV and with a £1,095 product fee. The popularity of products with a short term availability has been on the increase recently, with Accord […]


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  • BMH 3rd September 2012 at 4:59 pm

    Win or lose, if this thing went to court the city lawyers will be laughing all the way to the bank…