Tuesday, 5 May 2015

RBS - it never rains but it pours...

It would appear things tend to all go wrong at once for taxpayer-backed Royal Bank of Scotland.

This morning James Hurley, an old Telegraph colleague, revealed on the front page of the business section in The Times that RBS was under pressure to strip companies of their assets to improve its balance sheet. Here is a link to James's piece:

http://www.thetimes.co.uk/tto/business/industries/banking/article4430549.ece

And I my court mole informs me RBS is scheduled to be back in the High Court on Friday (08/05/2015) at the Rolls Building over the £30 million claim brought by Manchester-based developer Property Alliance Group, which is suing the bank over alleged mis-sale of complex derivatives and Libor-rigging.

The Financial Times wrote a piece on the situation a few months ago. Here is a link:

http://www.ft.com/cms/s/0/f041d23e-c813-11e4-8fe2-00144feab7de.html#axzz3ZGXs7iuH

This week's court hearing is supposed to about "disclosure". According to my court mole, if RBS loses the case management hearing it will mean the bank will have to cough up the high level reports prepared for banking regulators about its involvement in Libor rigging. Ouch!

A spokesperson for RBS declined to comment.

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