Good­win to de­fend his fi­nan­cial cri­sis role

The Courier & Advertiser (Dundee Edition) - - NEWS -

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.

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