RBS likely to be sued by many of own staff

Gavel

A third of the 12,000-plus individuals signed up to sue Royal Bank of Scotland over its allegedly 'misleading' £12.3bn ($20.7bn) rights issue are current or former members of staff at the bank.

The Herald Scotland reports that RBS Shareholders' Action Group, the largest of the investor groups suing RBS over the 2008 rights issue, said it processed its 4000th application from a current or former RBS member of staff last Thursday. That application is understood to have come from a risk expert.

Most of the bank employees who have joined the action group worked in RBS itself, NatWest, Ulster Bank, Coutts & Co, Adam & Company and Global Banking & Financial Markets (RBS's investment bank, since reinvented as M&IB). They come from all seniority levels, from call centre staff to ex-members of the group executive management committee.

A spokesman for the investor group claimed 'scores' of current senior RBS executives have applied to join the action group in recent days. All believe they were misled by Fred Goodwin and other members of the bank's board during the critical April-June 2008 rights issue period.

They are effectively suing their employer, together with four of their former bosses - Fred Goodwin, Sir Tom McKillop, Johnny Cameron and Guy Whittaker. 

To access the complete Herald article hit the link below:

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