Shareholders 4-year wait for RBS action verdict

A VERDICT in the shareholder action against Royal Bank of Scotland is unlikely to emerge until 2017 or 2018 – a decade after the controversial rights issue at the centre of the claim.
Action groups suing the bank for billions of pounds in damages do not expect the case to come to the High Court until at least 2016 and some fear that there will be more ­delays.
Four separate groups allege RBS misled investors about its financial strength at the […]

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    Royal Bank of Scotland chief receives shares worth almost £1.5m

Royal Bank of Scotland chief receives shares worth almost £1.5m

Ross McEwan handed shares as part of signing-on deal, as three of his executives take shares under bonus schemes.
The New Zealander was handed the shares as part of a signing-on deal when he was first hired from Commonwealth Bank of Australia to run the retail operations of the 81% taxpayer-owned institution in September 2012. He was promoted to chief executive last October after Stephen Hester quit and sold just under half of the 432,000 shares which were released to […]

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    RBS ‘£100bn black hole’ – taxpayers £45bn stake at Risk

RBS ‘£100bn black hole’ – taxpayers £45bn stake at Risk

British taxpayers risk losing their entire £45bn stake in Royal Bank of Scotland (RBS) which is in grave danger of failing within 10 years, according to an explosive new book.
A new study of the disgraced bank, which brought the UK to the brink of financial ruin, reveals RBS still has a £100bn “black hole” in its finances due to “five broad areas of alleged criminality and wrongdoing”.
They include the mis-selling of financial products such as payment protection insurance, the […]

Gates remain open for scandals

THE UK faces the risk of further banking scandals, unless action is taken to increase competition in the lending market for small and medium-sized businesses, according to a Government adviser.
Lawrence Tomlinson, the Yorkshire entrepreneur and Government adviser who compiled a dossier of complaints against RBS’s turnaround division, made the comments in response to reports that the Government is going to urge the big banks to increase the supply of SME (small-and-medium-sized business) loans.
The report in the Sunday Telegraph said […]

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    Lloyds sues RBS for £420m over ‘misleading’ rights issue

Lloyds sues RBS for £420m over ‘misleading’ rights issue

Cartoon by Steve Camley
In an unprecedented move, taxpayer-backed Lloyds Banking Group is suing Government-owned Royal Bank of Scotland over the Gogarburn-based bank’s “misleading” £12 billion rights issue.
In what is seen as the first American-style class action to hit the English courts, Lloyds, which is suing RBS through nine of its pensions and investment management subsidiaries, has joined more than 40,000 individual and institutional investors already seeking redress from RBS.
Lloyds’ £420million claim takes the total for all investors suing RBS […]

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    New RBS finance chief £1.9m ‘golden hello’ reigniting controversy over bonuses

New RBS finance chief £1.9m ‘golden hello’ reigniting controversy over bonuses

Royal Bank of Scotland has courted further controversy over ‘fat cat’ pay after handing a £1.9million ‘golden hello’ to its new finance chief.
Ewen Stevenson was awarded 584,506 shares on his first day in the job on Monday to compensate him for payments he forfeited at his previous employer Credit Suisse.  RBS shares are currently worth 326p each, up 2.3p on the day. Stevenson will enjoy an annual package of £1.9million a year, including a £800,000 salary, £280,000 in pension […]

Rush to join multi-billion pound RBS legal actions

ANGRY shareholders in Royal Bank of Scotland have made a late rush to join legal actions over its controversial £12 billion rights issue in 2008.
The deadline for suits related to the cash call on investors expires on Wednesday and one of the main action groups has seen a trebling of institutions seeking damages.
As a result, the claim led by British legal firm Stewarts Law is now expected to raise the sum being sought through the High Court from “hundreds […]

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RBS complain about ban on massive bonuses to fat cat staff

Ross McEwan’s gripe follows the bank showing higher profits – at the cost of 6300 jobs.  The bleating boss of bailed-out bank RBS has complained he’s not allowed to pay big enough bonuses.
Chief executive Ross McEwan sparked fury by warning that key staff might walk out over the Government’s refusal to back his plan for whopping bonuses for 2014.
He was speaking as 81 per cent taxpayer-owned RBS revealed pre-tax profits of £1.6billion for the three months to the end […]

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    May 15th Deadline for Investors joining RBS Shareholders Action Group

May 15th Deadline for Investors joining RBS Shareholders Action Group

Investors wishing to join the class action lawsuits against the Royal Bank of Scotland over its “misleading” April 2008 rights issue have until Thursday, 15 May 2014 to decide whether to proceed.

The cut-off point was laid down by the judge in the case, Mr Justice Hildyard as part of a group litigation order (see Hildyard’s judgment of 12 February).

With 12,500 members including ex-RBS and NatWest staff, retail investors and institutional investors, the RBOS Shareholders Action Group maintains that RBS and four […]

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Hobbling RBS will cost us dear

When Fred Goodwin was shown the door at RBS in the early hours of October 13 2008, the ice-cool chief executive became emotional and tears flowed. Five and a half years later, it is British taxpayers who should be crying.
When the government paid £45.2 billion to rescue what had briefly been the biggest bank in the world, politicians on all sides insisted that it would be run on a hands-off basis. The state would not use its 82 per […]

By |April 27th, 2014|RBS|0 Comments

Shareholders Action Group – Thousands of staff line up to sue RBS

A third of the 12,000-plus individuals signed up to sue Royal Bank of Scotland over its allegedly “misleading” £12.3 billion rights issue are current or former members of staff at the bank.

RBS Shareholders’ Action Group, the largest of the investor groups suing RBS over the 2008 rights issue, said it processed its 4000th application from a current or former RBS member of staff last Thursday. That application is understood to have come from an Edinburgh-based risk expert.

Most of the […]

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RBS Mulling Over Legal Action Against Lawrence Tomlinson

Jon Pain, the head of regulatory affairs at RBS, said the claims by the adviser to the Department for Business, Innovation and Skills had done serious damage to the bank’s reputation since his 20-page report was published in November and legal action could not be ruled out.

Royal Bank of Scotland is considering legal action against the millionaire businessman behind a damning report that accused the taxpayer-backed lender of deliberately putting customers out of business for profit.  The bank may […]

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RBS to wind-up GRG division West Register

Ian Fraser, whose book about RBS – entitled Shredded: Inside RBS the Bank that Broke Britain – will be published on June 6, said: “Clifford Chance was conflicted from the outset, and was therefore incapable of producing an objective report into this ongoing scandal.“It should never have agreed to do this report, and RBS should never have asked it. It is likely that its exoneration of RBS will be disproven in subsequent court actions.
“The report also suffers because of the narrowness […]

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By |April 20th, 2014|RBS, SME|0 Comments
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    7 Things RBS Hoped You Would Not Notice In Its Clifford Chance Report

7 Things RBS Hoped You Would Not Notice In Its Clifford Chance Report

The Royal Bank of Scotland welcomed a report it commissioned by Clifford Chance which found “no evidence” that it tried to systematically defraud small firms, whilst others condemned it as a “whitewash”.
CEO Ross McEwan said: “We could not let this allegation hang over us. That’s why we acted quickly to appoint Clifford Chance to get to the truth of this claim. We are determined to earn back the trust of our customers.”
The report was commissioned in response to allegations in […]

By |April 20th, 2014|All Banks, RBS, SME|0 Comments
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    GRG Business Action Group Plans Further Exposure of Wrong Doing

GRG Business Action Group Plans Further Exposure of Wrong Doing

Inquiry clears bank of forcing firms into bankruptcy but criticises business culture.
Neil Mitchell, who heads an action group that plans to sue RBS over GRG, said he had not expected the report to find evidence of wrongdoing. “Now that it is published, we can get on with further exposures and actions planned on behalf of the over 2,000 cases now in circulation and seek retribution,” he said.

Clifford Chance publicised its review, which had been due to come out at […]

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    Clifford Chance Review Of Allegations By Dr Lawrence Tomlinson

Clifford Chance Review Of Allegations By Dr Lawrence Tomlinson

Clifford Chance refuted Mr Tomlinson’s claims and said it could find no instances of the types of behaviour the businessmen described in his own report, which alleged viable companies had been forced into administration through disproportionately high fees and their assets sold off at below market prices to subsidiaries of RBS.

“The bank has no financial incentive to unnecessarily bring about the customer’s insolvency by imposing unaffordable interest and fees. We found no examples where the bank deliberately charged interest […]

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RBS: No evidence of small firm fraud

Royal Bank of Scotland says law firm Clifford Chance has cleared it over allegations that it forced small firms to close so it could make a profit.
The bank asked the law firm to look into the claims in November 2013 after a report criticised it for its treatment of small firms.
The law firm concluded that there was no evidence to support the allegations.
RBS chief executive Ross McEwan welcomed the findings, calling the allegations “serious and damaging”.
Clifford Chance was appointed by […]

NatWest glitch Thousands of savers without interest

The bank has suffered yet another technical problem this time denying interest payments on thousands of savings accounts and ISAs.
NatWest today confirmed it had fixed a technical problem that had prevented interest payments on thousands of savings accounts and ISAs.

Customers trying to log on to online banking were yesterday told: “We are aware that monthly, quarterly and annual interest payments have not been applied to some savings accounts. This is being investigated as a piority and we’ll update you […]

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By |April 3rd, 2014|Natwest, RBS|0 Comments

Whistle Blower launches Action Group to fight RBS

Former Torex Retail boss Neil Mitchell has formed an action group and engaged litigation specialist Enyo Law with the aim of filing a multi-billion pound lawsuit against Royal Bank of Scotland.

Mr Mitchell, who uncovered a fraud at the software company and was fired for his trouble, will act as the chairman of the not for profit organisation.

He said the RBS GRG Business Action Group had been founded to “to support UK Business” in anticipation of a “multi billion claim to […]

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Asset Based Lending extension for SME manufacturers

Small and medium sized manufacturing businesses will be able to use their assets to borrow cash thanks to a newly created team at RBS and NatWest.

Asset based lending (ABL) is a well established funding mechanism which allows companies to borrow money against its assets including existing stock and equipment.

The newly established team includes 11 specialist finance managers who facilitate deals across the UK – specifically for businesses with a turn over of between £10 million and £25 million.

Although RBS […]