Goodwin to defend his financial crisis role
Royal Bank of Scotland is bracing itself for a costly court battle with shareholders that will see former boss Fred Goodwin defend his role in the lender’s near collapse during the financial crisis.
Mr Goodwin and a raft of former executives are in line for a public grilling as part of a £700 million lawsuit brought against the lender by 9,000 retail investors and 18 institutions in the RBS Shareholder Action Group. During a 14-week trial, which begins on Monday, Goodwin will be questioned over events leading up to the Government’s £45.5 billion bailout nine years ago.
The legal action centres on a rights issue overseen by Mr Goodwin in April 2008 when RBS asked shareholders to pump £12bn into the bank.
Shareholders claim they were left nursing hefty losses when RBS shares plunged 90% and the government was forced to step in when the deal turned toxic.
Fred Goodwin will face public grilling.