Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

Internet users say "we are not afraid" after Westminster attack

Read more

FOCUS

Pakistan faces water crisis

Read more

ENCORE!

Film show: 'Midwife', 'Beauty and the Beast' and 'Girl Asleep'

Read more

MIDDLE EAST MATTERS

The hidden collection: Iran exhibits contemporary art masterpieces

Read more

BUSINESS DAILY

More countries suspend Brazilian meat imports amid scandal

Read more

IN THE PAPERS

Brussels attacks, one year on: 'What if their hate has contaminated us?'

Read more

EYE ON AFRICA

DR Congo: Rare footage of killings in central Kasaï province sparks alarm

Read more

IN THE PAPERS

French interior minister quits over holiday jobs for daughters

Read more

MEDIAWATCH

A French presidential debate with few surprises

Read more

Business

Pensions funds to pursue the Royal Bank of Scotland

Latest update : 2009-03-16

Two local government funds are to sue Royal Bank of Scotland (RBS) for compensation for "massive losses" incurred when the bank had to be bailed out, according to media reports. RBS took 20 billion pounds of government funds.

AFP - British pension funds are to sue Royal Bank of Scotland (RBS) for compensation for "massive losses" incurred when the bank had to be bailed out and the share price collapsed, it was reported Monday.

Two local government funds claim that RBS and former chief executive Fred Goodwin "falsely reassured" investors the bank was in good health when it was "effectively insolvent" because of bad loans, The Times said.

RBS is 70 percent state-owned after taking 20 billion pounds of government funds as it struggled to cope with the global financial crisis. Last month it posted Britain's biggest ever corporate loss.

The Times reported that the two funds had hired Cherie Blair, the lawyer wife of former British premier Tony Blair who works under the name Cherie Booth, to file the lawsuit in a New York court.

She told the paper she had agreed to take on the case because of the "massive losses inflicted on local authority pension schemes and other UK institutions who were the largest investors in RBS".

Date created : 2009-03-16

COMMENT(S)