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
Looming US Basel endgame redraft sparks calls to save IRB
Experts say 20 years of data makes credit risk models more appropriate than standardised approach
Cool heads must guide financial regulation of climate risk
Supervisors can’t simply rely on ‘magical thinking’ of market discipline, says Sergio Scandizzo
Markets worry EU’s reporting simplification will add to burden
Rather than reducing firms’ obligations, market participants fear it could end up increasing requirements
EU banks show basic instinct for credit valuation adjustments
Simpler approach to CVA appeals even to some already using more complex models for counterparty risk
Bank of England wants dynamic Emir for UK clearing houses
Review won’t just photocopy EU legislation, as BoE seeks to make rules simpler and adaptable
Big banks could be sidelined from future rescue deals – FSB
Exacerbation of too-big-to-fail means G-Sibs could already be too large to take extra assets
More guidance, less enforcement: the SEC under Paul Atkins
Current and former insiders expect clearer crypto rules and an end to regulatory violation sweeps
During Trump turbulence, value-at-risk may go pop
Trading risk models have been trained in quiet markets, and volatility is now looming
