Royal Bank of Scotland directors face potential fraud investigation
In a move which has surprised many in the city it has been revealed that Sir Fred Goodwin and his former Royal Bank of Scotland directors could face a criminal investigation in relation to the administration of the Royal Bank of Scotland. The shares collapsed earlier this year amid signs that the group had overextended itself in foreign markets and was struggling on a liquidity basis.
While some believe that Sir Fred and other former directors of Royal Bank of Scotland are nothing but scapegoats for the government it would appear that some substantial shareholders in the group think otherwise. A high-profile police investigation is likely to focus on whether the group fully acknowledged in public the alleged liquidity difficulties prior to a fundraising to save the bank. There is concern from some quarters that many investors acquired shares after reassurances from the board only to find that the position of the group had weakened substantially just after the fundraising.
This is probably the last thing the UK banking sector needs at this moment in time, although it will no doubt focus the minds of regulators and investors in the UK, at a time when survival should be if paramount importance. This is a story which could literally drag on for many months.
Share this..
Related stories
UK regulators urged to look at mortgage arrear charges
A top panel of lawmakers in UK has suggested that the Financial Services Authority (FSA) should take a long hard look at the UK mortgage market and in particular charges made to those in arrears. There is evidence to suggest that letters to confirm a mortgage holder is in arrears are attracting charges up to £35 and an appointment with a debt counsellor is costing some people in the region of £1...
Read MoreMoney is the biggest worry for 3.4 million Brits
Research from Alliance and Leicester into financial attitudes in the UK has revealed that for 3.4 million British people, money is the biggest concern in their life, with nearly a fifth or 18 per cent worrying about money everyday.Unsurprisingly, some times of the year see money worries escalate - with half of those who worried about money said their concerns were triggered by the costs of Christm...
Read MoreIs the price of gold set to hit $1000?
Gold has often been seen as a safe haven investment in troubled times and UBS, the leading stock market giant, would appear to agree with this comment. The company has released a study on the price of gold suggesting a rise from $700 an ounce to more than $1000 an ounce during the course of 2009 as more and more investors look for those "safe haven" investments.
The fact that gold w...
Why is the Nationwide so down on the UK housing market?
The last 24 hours have given those looking towards buying their first property something to think about with news that Nationwide believes UK house prices will fall next year. While this is not a new view in the marketplace, the very fact that company with the reputation and the respect of Nationwide is suggesting a significant fall next year does give food for thought. So what is behind the sugge...
Read MoreBritish Airways announced 92% fall in profits
Further turbulence in the UK airline market is expected with news that first profits at British Airways fell by 92% with the company reporting very difficult trading conditions. Pre-tax profits for the first six months to September 30 fell to £52 million although there is also concern about the full-year impact. Record fuel prices and a constant reduction in travel numbers seems to have done the...
Read More