Royal Bank of Scotland's (RBS) defence against a £4bn lawsuit from shareholders contradicts evidence given to MPs by former Financial Services Authority (FSA) boss Hector Sants, it has emerged.
The 81% state-owned bank is fighting a claim from individuals and institutions who say directors gave a false impression of the lender's financial position in the prospectus for its £12bn rights issue, the Daily Mail reports. Part of the case hinges on whether City regulators were already concerned about RBS's capital position in the run-up to the publication of the prospectus in April 2008. ‘Contrary to the allegation, the rights issue was not forced on RBS by the FSA,' according to law firm Herbert Smith. But in 2012 Sants (pictured), said the FSA had raised concerns about the ba...
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