Two British local authorities set to sue Royal Bank of Scotland
We are moving headlong towards one of the most bizarre situations seen in legal history with two local authority pension schemes set to sue the Royal Bank of Scotland for "withholding information about the state of the company". As we have covered on a number of occasions in the past, there have been murmurings from shareholders regarding the massive rights issue last year with allegations that the true extent of the companies fall was not fully disclosed at the time of the issue.
While this would seem like a fairly normal court case with both sides giving their opinions, we are in fact seen taxpayer suing taxpayer with the two local authority pension schemes held on the half of employees of the authorities and the Royal Bank of Scotland majority owned by UK taxpayers. If for example a compensation payment of £10 million was agreed we would have the bizarre situation of taxpayer effectively being paid by taxpayer. There will only be one winner in a case which could go on for some time and is highly complex, i.e. the legal profession.
Many will be watching the Royal Bank of Scotland case as this could have serious implications for UK taxpayers with substantial compensation payments possible. However, there is speculation that the vast majority of potential compensation payments may well be covered by financial insurance offered by AIG - another of the fallen giants.
Share this..
Related stories
Do you ever feel a cold chill in your home?
There are many areas of everyday life where it is difficult to cut costs and save money but there are also many simple techniques which we seem to ignore which can actually save us a lot of money in the short, medium and longer term.
How many times have you sat in your home with the wind howling outside and noticed something of a cold chill around your window frames and your door fr...
Surprise, surprise, UK car scrappage scheme extended
As expected Lord Mandelson has today taken the opportunity to announce an extension of the UK government's car scrappage team at the Labour Party conference in Brighton. The scheme is now being extended to cover an additional 100,000 cars and vans which when you consider each and every scrapped vehicle could be in line for a £2000 discount, is a significant amount of money.
The ori...
Will Northern Rock be given away?
As it becomes more and more apparent that the UK government would like to dispose of Northern Rock before the general election there are serious concerns that the company will be "given away". Despite an attempt by a number of MPs to persuade the government to convert Northern Rock back into a mutual society, this particular avenue looks to be a non-starter. In all honesty the Northern Rock has be...
Read MoreIs it morally correct to subsidise overseas companies?
With Lord Mandelson set to deliver a £400 million subsidy to Magna, the probable acquirer of GM Europe, there are concerns as to whether state aid, at least to such a level, is both morally and politically correct.
The truth is that a £400 million subsidy, along with a guarantee of employment for thousands of UK workers in the short to medium term, is probably worth significantly...
Fuel duty rise to hit the Scottish driving community
As of midnight tonight the UK government will be introducing a further two pence tax charge on every litre of fuel sold in the UK. Aside from the fact that every motorist and every haulage firm in UK will see their driving costs increase, there are specific concerns for the Scottish driving community who many believe will be hit hardest by the move.
Prior to the 2p increase in the c...