The UK government appeared powerless to seek retribution from smug Fred Goodwin and the Royal Bank of Scotland directors, despite accepting tax payers cash to bail out their business, it looked as though they would be let off scot free as Gordon Brown accepted half hearted apologies from the bank for it’s total incompetence.
The icing on the cake, for Goodwin in particular, was to bolt the sinking ship once his pension had been put in place and stick two fingers up to the government and everyone who’s life he has made a total misery.
North Yorkshire and Merseyside council’s have other ideas and have solicited the services of Cherie Blair QC, to sue both RBS and the despicable Goodwin for what could amount to hundreds of million pounds. The claim against the bank is based on the premise that RBS and Goodwin ‘falsely reassured’ investors that the bank was financially secure, when in reality unstable loans had rendered it ‘effectively insolvent.’
The local authorities say that RBS inflicted massive losses on council pension schemes despite being among the largest investors in the bank.
The law suit will go through American courts, where the red tape burden is considered less problematic and expensive. As this type of lawsuit is a class action, it means that any investor in Europe or the US who have suffered devastating losses at the hands of RBS, can join the process against the bank.
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