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- Address at ICI's 2017 Securities Law Developments Conference - SEC Commissioner Stein
- New York Pension Fund Seeks More Pay Disclosure from Wells Fargo
- Wells Fargo Sanctions Are on Ice Under Trump Official
- Josh Brown: Here's How to Buy Bitcoin, But Realize It Could Be One Giant Bubble
- Trump's New Tax Plan Could Cost Citigroup $20 Billion
- Morgan Stanley Fires Former Congressman Harold Ford Jr.
- Al Franken Will Resign Over Sexual Misconduct Allegations - His Full Resignation Speech
- Ex-NFL Player Gets 40 Years for Running $10Mn Fraud
- Bitcoin Blows Past $15K, Adding $2K in Under 12 Hours
- Financial Adviser Settles Charges for Defrauding Private Equity Fund Investors
- New Cross Market Equity Supervision Report Cards - FINRA Phone-In Workshop, WebEx Presentation
- Mueller Just Crossed Trump's Red Line, With Deutsche Bank Subpoena
- Wildfire Rages Near Los Angeles
- Former Company Insider Has $4.1Mn Payday as a Whistleblower
- Audit Firm, Anton & Chia, Conducted Fraudulent Audits of Penny Stock Companies - SEC
- Mueller Subpoenas Deutsche Bank Records on Trump and Family
- Bitcoin Nearly Halfway to $400Bn Value Predicted by Winklevoss Twins 4 Years Ago
- Fidelity Clients Suffer Second Website Glitch in Week
- CBOE Beats CME to Bitcoin Futures Launch with December 10 Start
- McKinsey Senior Exec Thomas Barkin Named New Head of Federal Reserve Bank of Richmond
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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.