Don't miss

Replay


LATEST SHOWS

EYE ON AFRICA

Mashujaa day: Kenyatta and Odinga call for peace before election rerun

Read more

THE INTERVIEW

Kurdish referendum a ‘colossal mistake’, says son of late president Talabani

Read more

MEDIAWATCH

The new 30s club: NZ's Jacinda Ardern joins list of maverick leaders

Read more

THE WORLD THIS WEEK

Raqqa, Kirkuk, Xi Jinping

Read more

REPORTERS

The Dictator's Games: A rare look inside Turkmenistan

Read more

#TECH 24

Teaching maths with holograms

Read more

DOWN TO EARTH

Is China exporting its pollution?

Read more

#THE 51%

Are female empowerment adverts actually good for the cause?

Read more

FOCUS

The mixed legacy of 'Abenomics' in Japan

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)