RBS investors to sue bank chiefs
Investors left out of pocket by the part-nationalisation of the Royal Bank of Scotland have announced plans to pursue legal action against its former directors for up to £9 billion.
An action group working on behalf of thousands of private shareholders confirmed plans to pursue compensation amid ongoing fury at being "misled" by Sir Fred Goodwin and his former colleagues.
Roger Lawson, of RBS Shareholders Group, said: "All the directors on the board at the time of the buyout will be targeted by this action."
Furious shareholders - some of whom claimed to have lost more than £20,000 - believe they were only fully informed about the health of the bank, now 70% owned by the taxpayer, when they were asked to invest money in April last year.
In an emergency meeting in central London, Mr Lawson said he was seeking advice from a legal team and called for members of the action group to contribute money towards the claim.
One investor, who did not want to be named but claimed she had lost "tens of thousands", said afterwards: "This is not just about getting our money back, this about sending a message to Sir Fred. It's an utter disgrace he wasn't sacked."
The meeting came after investors at nationalised Bradford & Bingley accused the Government of "legalised theft" as they were told they may not receive news of any payouts until next summer.
Peter Clokey, who will receive up to £4.8 million to calculate a compensation package from the Government, told shareholders it would take up to a year to produce his results. But he said he did not want to "set any hares running" by predicting its final value.
Shareholders from both banks believe they have been left out of pocket by the bailouts at the peak of the crisis.
RBS is now 70% owned by the taxpayer following a Government bailout a year ago and lost a UK record £24.1 billion in 2008.
