RBS faces £4 billion pensions lawsuit ... and Cherie Blair
NEW YORK & LONDON - Royal Bank of Scotland (RBS) is facing a £4 billion class-action lawsuit taken up by Cherie Blair, lawyer and wife of former UK prime minister Tony Blair, over "false assurances" about RBS's financial health prior to collapsing share prices last year.
The North Yorkshire and Merseyside local government pension funds have hired Blair to work on the lawsuit, filed in New York, alongside California-based law firm Coughlin Stoia Geller Rudman & Robbins.
Dutch pension fund and asset manager MN Services has also joined the class action as a co-lead plaintiff, after taking losses to RBS.
The suit names former RBS chairman Fred Goodwin - currently at the centre of a UK political furore over his own large pension package - and the entire RBS board of directors as co-defendants. The lawsuit has been filed in the US, where the law is more flexible to allow class-action lawsuits.
RBS sought government aid and majority state ownership after taking a £24 billion loss for 2008. The New York lawsuit uniquely pits RBS - now 70% owned by the national government of UK prime minister Gordon Brown - against local government authorities.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Dora flood pitches banks against vendors
Firms ask vendors for late addendums sometimes unrelated to resiliency, requiring renegotiation
Swiss report fingers Finma on Credit Suisse capital ratio
Parliament says bank would have breached minimum requirements in 2022 without regulatory filter
‘It’s not EU’: Do government bond spreads spell eurozone break-up?
Divergence between EGB yields is in the EU’s make-up; only a shared risk architecture can reunite them
CFTC weighs third-party risk rules for CCPs
Clearing houses could be required to formally identify and monitor critical vendors
Why there is no fence in effective regulatory relationships
A chief risk officer and former bank supervisor says regulators and regulated are on the same side
Snap! Derivatives reports decouple after Emir Refit shake-up
Counterparties find new rules have led to worse data quality, threatening regulators’ oversight of systemic risk
Critics warn against softening risk transfer rules for insurers
Proposal to cut capital for unfunded protection of loan books would create systemic risk, investors say
Barr defends easing of Basel III endgame proposal
Fed’s top regulator says he will stay and finish the package, is comfortable with capital impact
