BROWSE BY TOPIC
Stories of Interest
- White House Now Doesn’t Dispute Details of Trump's Call with Army Widow
- Goldman Sachs’ Lloyd Blankfein Just Threw Some Serious Brexit Shade
- Guggenheim Partners ‘Bank Wrecker’ Could Get $100Mn Exit Package
- Proposed Arbitration Rule Change: For Customers Dealing with an Inactive Firm or Associated Person
- This Family Bet It All on Bitcoin
- Clearinghouses Pass CFTC Liquidity Stress Tests
- President Trump Admits He’s Trying to Kill Obamacare. That’s Illegal.
- Trump Plunges Down List of ‘America’s Richest’
- Is Trump’s “Foreclosure King” in Over His Head?
- FBI Arrests NCAA Basketball Coaches and Adidas Rep in Bribery Probe Involving Recruitment
- Equifax CEO Steps Down Amid Hacking Scandal
- Litigation Costs to Rub Salt in RBS Investor Wounds
- RIAs Poised to Land Wirehouse Recruits - Dan Jamieson
- Citibank and U.K. Affiliate to Pay $550K Penalty for Swap Data Reporting Violations - CFTC
- AIG to Restructure into 3 New Units, Marking CEO's First Big Move
- Accounting Firm Deloitte Says It Suffered Cyberattack (subsc reqd)
- Upcoming FINRA Board Meeting and FINRA360 Update
- Elizabeth Warren Lifts Hold on Trump DOJ Antitrust Nominee
- Bigger Mergers Narrow Indy Reps' Options, Alter IBD Channel - Dan Jamieson
- Dentons to Merge with U.K.'s Murray & Spens
We seek to provide information, insights and direction that may enable the Financial Community to effectively and efficiently operate in a regulatory risk-free environment by curating content from all over the web.
Stay Informed with the latest fanancialish news.
NEWSLETTERS & ALERTS
RBS Settles Investor Lawsuit Pertaining to 2008 Cash Call
[Photo: Fred Goodwin, Former CEO of RBS - Video Grab from 2009]
Royal Bank of Scotland reached an out-of-court settlement with organizers of the RBS Shareholder Action Group, ending a lawsuit that was spiced with the prospect of having disgraced former CEO Fred Goodwin testify about the bank’s financial issues leading up to a $15 billion cash call in 2008 – which management and directors of the bank failed to disclose.
The deal will cost RBS about $257 million, meaning that shareholders will get 82 pence per share, up from the 43 pence per share that the bank offered one week earlier. Investors who paid 200 to 230 pence for each RBS share in 2008 ended up losing about 80% of their investment.
Sir Fred Goodwin, who left RBS a wealthy man, became a symbol of banker recklessness and greed during the credit crisis. Goodwin, nicknamed "Fred the Shred" for his cost-cutting abilities and abrasive management style, was first feted and knighted before RBS's near collapse at the height of the credit crisis prompted the world's biggest bank bailout.
Some shareholders within the group wanted to pursue the case against the bank. However, they were short on funding and lawyers had advised that the case could have dragged on for years. In addition, investors representing 87% of the claim had already settled their case after RBS.