Reuters - Video

Edition: US | UK | IN | CN | JP

video Finance Videos

RBS gets a week to end investor suit or face trial

Wednesday, May 24, 2017 - 01:39

A British judge has given Royal Bank of Scotland a week to avoid a trial by reaching a deal with investors who allege the bank misled them over its 2008 fundraising. Laura Frykberg reports.

▲ Hide Transcript

View Transcript

They say third time lucky... Something the Royal Bank of Scotland will hope proves true. For a third day, the British bank's been given extra time to avoid TRIAL... Through an out of court settlement with investors. SOUNDBITE (English) OANDA SENIOR MARKET ANALYST, CRAIG ERLAM, SAYING: "Royal Bank of Scotland is being constantly involved in a number of scandals since the 2008 financial crisis. And I think really the bank wants to move away from it. " It's the opposite case, for some of the thousands of investors taking action against RBS. They allege the bank and its former boss Fred Goodwin - mislead them over its financial health ahead the 2008 crash. When Goodwin oversaw the acquisition of Dutch rival, ABN Amro. And asked shareholders for money in exchange for discounted shares. Six months later - the government stepped in to bail RBS out - to the tune of almost 46 billion pounds (SOUNDBITE) (English) CMC MARKETS ANALYST, MICHAEL HEWSON, SAYING: "I would like to see what sort of due diligence was actually done to the ABN Amro takeover because I think it was plain to most people that it was one of those takeovers that subsequently turned out to be a very big poison pill." The bank and its former boss deny any wrongdoing. And have already doubled the out-of-court settlement offer to investors to almost 1 billion pounds... Which some are said to be tempted by... Perhaps unsurprisingly, if the case goes to trial, it could become one of the costliest in British legal history.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

RBS gets a week to end investor suit or face trial

Wednesday, May 24, 2017 - 01:39