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Ex-RBS boss Goodwin to face investors in court

Sunday, May 21, 2017 - 01:44

Fred Goodwin, the former Royal Bank of Scotland chief executive, is set to become the first senior banker in Britain to be challenged in court over his role in the financial crisis. Ciara Lee reports

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Nine years on... Fred Goodwin is to become the first senior banker in Britain to be challenged in court over his role in the financial crisis. Thousands of RBS investors bringing a civil trial against the ex-RBS boss. They say they were misled by Goodwin and other former executives over the bank's financial health, ahead of a 12 billion pound cash call in 2008. Court documents name Goodwin, other ex-RBS bosses and the bank as defendants in the case. Goodwin was knighted for transforming the Scottish retail lender into a global banking force. But he fell from grace after the bank needed a 46 billion pound government rescue. The case will force the bank to revisit the darkest period in its recent history. But many think the sector is already very different. (SOUNDBITE) (English) CIBC, HEAD OF FX STRATEGY, JEREMY STRETCH, SAYING: "Yes you can argue there is a questioning of some of the probity of the statements that were utilized by the management in order to facilitate the funds being gained in the various rights issues. But I think you have to put the process and the decisions in the context of the uncertainties that were really facing the banking sector on a daily basis almost at that particular time." RBS, which remains more than 70 percent state-owned, denies any wrongdoing and says its former bosses did not act illegally. Since leaving the bank, Goodwin has reportedly struggled to find work and spends time playing golf and repairing vintage cars. Lawyers warn it could take another seven years to legally establish any RBS liability and quantify any damages if the bank loses the case.

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Ex-RBS boss Goodwin to face investors in court

Sunday, May 21, 2017 - 01:44