#RBS reaches £800m settlement with shareholders,perhaps the #Bastards can give some back to ex-employees?

By 12th July 2016 May 14th, 2019 No Comments

​Royal Bank of Scotland has reached an £800 million deal to compensate shareholders who took part in the bank’s credit crunch rights issue.

The ‘full and final’ deal was arranged with five groups which the estimated acted on behalf of 77% of shareholders who have alleged they were misled by the bank when it launched a 2008 cash call.

The organisation said that it was seeking to improve its capital ratios when it sought fresh cash after the closure of wholesale liquidity markets.

Shareholder groups allege that the bank knowingly misled them, after it dangerously overstretched its balance sheet with the top-of-the-market acquisition of dutch bank ABN AMRO.

RBS chief executive officer Ross McEwan (pictured) said: ‘We have been very clear that we wanted to deal with as many of our legacy litigation issues as possible during 2015 and 2016.

‘We are pleased to have reached this agreement and hope that it will be accepted by the remaining claimant group(s) so that this long course of complex and costly litigation can now be concluded.’

The £800 million sum will be paid out of existing cash provision. The bank added that it was continuing to seek a resolution with two other groups.

The case is due to reach trial in March next year, and RBS said it will contest any unsettled claims.

Tim Kelly

Tim Kelly

Tim is a highly qualified Independent Engineer with over 20 years experience as an Engineering Assessor of damaged vehicles.

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