Two major local authority pension schemes have started legal action against Royal Bank of Scotland, alleging it made "materially false and misleading" statements about its financial health.
The £4.3bn Merseyside Pension Fund and £1.2bn North Yorkshire Pension Fund will act as lead plaintiffs in the class action law suit against the bank. The schemes and are seeking damages for losses incurred as a result of the massive fall in the value of their investments when RBS was forced to take a bail out from the government. The schemes allege RBS "falsely reassured investors" the company was well-capitalised when it was in reality "effectively insolvent as a result of impaired assets, bad loans, and its disastrous partial acquisition of ABN AMRO". The case - which will be heard ...
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