Cash crisis in compo claim

RBS shareholders racing against time

ROYAL Bank of Scotland shareholders who want to continue a legal claim against the lender could face a race against time to raise a fighting fund.

Current and former staff are believed to be among those urging the bank to increase a compensation offer, linked to a £12billion cash call in 2008. They may be forced to secure fresh backing by next week to continue a High Court battle, after a large number of other shareholders indicated they were willing to accept a sweetened offer from RBS. A High Court judge wants an update by next Thursday. Reports say some “diehard” investors don’t want to accept RBS’S 82p-a-share offer and are holding out for at least 92p. One source said: “This is pennypinching by the bank.” Investors claim they were duped into buying RBS shares in the 2008 rights issue, with some taking out loans or using their life savings. But they saw the value of the shares almost wiped out when, months later, RBS nearly collapsed and was saved by the taxpayer. Settling the case would prevent disgraced former RBS boss Fred Goodwin appearing in court. Shareholders who took part in the rights issue but didn’t claim will be denied compensation because of a sixyear time limit, unless the High Court judge makes a specific ruling.