Investor takes RBS to court over 'insolvency'

Ian Hamilton, a former QC, has filed a civil case claiming the bank was already insolvent when it issued shares and tricked investors into coughing up more cash. At the time of the £12bn rights issue, the largest in British corporate history, Hamilton purchased 640 RBS shares at a cost of £2 per share. They have since fallen in value by more than 90%. He says RBS convinced investors to buy new shares while concealing the true state of its finances. Since the rights issue, RBS has received a £20bn bail-out from the Government, which now owns 68% of the bank, and has announced it will ...