Monday, 5 December 2016

RBS Agrees To Settle Multi Million-Pound Worth Deal With Its Shareholders


Royal Bank of Scotland has agreed multimillion-pound payouts to settle claims from shareholders that they were misled during the bank’s £12bn cash call in 2008.

The bailed-out bank has reached agreement with three out of five groups which brought the claims, worth about £4bn, over the rights issue which took place before its £45bn taxpayer bailout.

The groups represent 77% of the claims by value and the bank said it would aim to reach a deal with the remaining two. In total, it has set aside £800m to settle the claims.

Ross McEwan, chief executive of RBS, has been trying to tackle these so-called legacy issues. The bank also faces a penalty of up to £8bn from the US authorities over the way it sold mortgage bonds a decade ago.

The bank, which is not admitting liability, last week failed its annual health check from the Bank of England. Uncertainty about such matters is one reason the bank struggled in last week’s stress tests.



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