Tuesday 26 September 2017

RBS ordered to share records with investors

RBS was rescued by a £45bn (€38bn) taxpayer-funded bailout at the height of the credit crisis. Photo: Bloomberg
RBS was rescued by a £45bn (€38bn) taxpayer-funded bailout at the height of the credit crisis. Photo: Bloomberg

Kirstin Ridley

Ulster bank owner Royal Bank of Scotland (RBS) has lost a court battle to withhold transcripts, notes and interview records from thousands of retail investors suing the bank over an ill-fated, £12bn (€10m) share sale in 2008.

Judge Robert Hildyard yesterday rejected an attempt by RBS to class the documents as legally privileged and confidential. It was a judgment welcomed by a group of 27,000 retail investors, who hope the information will bolster their case ahead of a trial next March.

"I accept that the court has discretion to prevent disclosure and inspection, or impose conditions, in an exceptional case ... But I have not been persuaded that this is such a case," Judge Hildyard said.

RBS said it may appeal the judgment.

The bank attempted to settle the multi-billion pound lawsuit with an £800m (€675m) out-of-court deal on Monday. But only institutional investors accepted the offer, dropping their part of a claim that alleges the bank misrepresented its parlous financial state when asking investors to stump up cash in 2008.

Shareholders lost around 80pc of their investments after the bank's near collapse, just months after the cash call. RBS was rescued by a £45bn (€38bn) taxpayer-funded bailout at the height of the credit crisis, a third of which went into Ulster Bank. (Reuters)

Irish Independent

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