Goodwin to give evidence in RBS shareholders’ case
SHAMED banker Fred Goodwin is to give evidence in a £4 billion legal challenge by shareholders against the Royal Bank of Scotland.
Mr Goodwin has been included in a list of witnesses identified by lawyers defending RBS against shareholders who claim they should have been better informed about the financial health of the bank.
The issue arose after a takeover by RBS of Dutch bank ABN Amro while Mr Goodwin was chief executive. Investors who bought shares sold in 2008 to s t abil i s e the bank’s finances saw about 90 per cent wiped off the share price in months.
It has been estimated more than 63,000 small shareholders lost money.
Many feel aggrieved because they believe they were not given the full picture about the health of the bank.
The Scotland on Sunday newspaper reported that Mr Goodwin, former chairman Tom McKillop, former executive director of the bank’s investment arm Johnny Cameron and ex-finance director Guy Whittaker are set to give evidence in the court action that has been raised by the RBS Shareholders’ Action Group.
The four former RBS directors face being questioned by the Action Group’s lawyers to explain the sequence of events that led to the bank’s demise and its subsequent £45bn bailout at taxpayers’ expense.
A spokesman for the RBS Action Group, which is attempting to sue Mr Goodwin, Mr McKillop, Mr Cameron and Mr Whittaker as well as RBS, said: “We are very much looking forward to the opportunity to question these high-profile former leaders of RBS on the witness stand.”
SNP deputy leader and Westminster spokesman Stewart Hosie said: “Given the RBS Action Group litigation covers a period when these gentlemen were at the helm, it is no surprise they have been listed as witnesses.
“I think the public will pay a great deal of attention to any evidence they may provide to identify even more clearly the culture that existed within RBS at that time.”
The action group is pursuing the civil court case, which is expected to go to trial in March next year, on behalf of thousands of investors who lost money by subscribing for shares during the 2008 RBS Rights Issue.