The man who presided over RBS’ £45.5bn government bailout is due in court in June to face a civil lawsuit over claims the lender misled investors.
Fred Goodwin, the former chief executive of the state-backed bank, will appear to face questions over whether RBS failed to reveal full details of its financial situation prior to a cash call that ultimately preceded the government’s bailout.
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The civil lawsuit has been brought by thousands of investors, who were urged by the bank to prop it up in 2008. However, the investors claim it failed to give them the full picture on its financial status.
Because the situation was worse than disclosed, the investors say, RBS was forced to go cap in hand to the government, a move which wiped out much of their investment.
RBS denies the allegations.
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Goodwin, who was stripped of his knighthood in the wake of the bank’s plight, is scheduled to appear in court on 8 and 9 June. The case is due to begin in May, according to documents filed yesterday evening.
RBS’ former chairman, Tom McKilop, is slated to appear on 7 June, and the former head of the lender’s investment banking arm, Johnny Cameron will is scheduled for 12 June appearance.