Royal Bank of Scotland holds fire on Goldman Sachs claim
Royal Bank of Scotland has today confirmed that the $840 million loss crystallised through its ABN Amro subsidiary from a transaction involving Goldman Sachs is under review. This comes at a time when Goldman Sachs a is set for a date in court with the Securities and Exchange Commission (SEC) alleging fraudulent activity in the transaction which included Royal Bank of Scotland.
While slowly but surely details of the SEC case are emerging it is unclear as to how strong the case is and whether the SEC will be successful. As a consequence, Royal Bank of Scotland has confirmed it is holding fire on a potential claim against Goldman Sachs with regards to the $840 million loss until the outcome of the SEC case is confirmed.
If the SEC is successful in its pursuit of Goldman Sachs, which is nowhere near guaranteed, it could open a potential can of worms with many companies set to step forward and claim compensation from this particular transaction under review. However, it is certain that both the SEC and Goldman Sachs will employ the best minds in the legal industry and the court case could drag on for many months if not years.
Some experts believe the case is fairly shaky and the revelation that the SEC vote on prosecuting Goldman Sachs was a very tight 3-2 affair has cast further doubt on the situation.
Share this..
Related stories
Is Lehman Brothers On The Brink?
While there has been a flurry of takeover rumours around US financial giant Lehman Brothers, with the state run Korea Development Bank among the front runners, there is real concern that the group is in big trouble. Even though the Korea Development Bank had publically expressed an interest in acquiring part of or the entire banking giant this seems to have been curtailed by government officials...
Read MoreThe HBOS story unfolds
As the markets opened today there was a sudden surge after news that AIG has been saved by the US authorities with a multi-billion dollar bailout package. However, this boost of confidence was very short lived with the UK markets falling back in to the down trend of recent days. The biggest loser today is HBOS which at one point fell by over 50% breaking the £1 barrier as it did so. More news...
Read MoreInternational investors hit the gold market
While the price of gold has been fairly volatile for some time there appears to be something of a renewed vigour for the precious element. The price of gold at the moment is around about $931 although a significant gold trading company, Bullion Vault, has today suggested that investors are buying gold in large quantities as a hedge against future inflation.
There is no doubt that go...
Emerging market investment - is it time to take a look?
When the worldwide economy is performing well there is often great interest in the emerging markets of the world where base prices may be a little cheaper and offer better value for money. However, once a downturn...
Read MoreIs £4 Billion Enough For Barclays?
As talks appear to be nearing a close it seems that Barclays Bank may soon be announcing a fund raising of £4 billion from a select number of institutional investors. As we have covered on this site over the last few days the move is seen by many as a turning point for the group, putting finances back on a more steady footing. However, there is a growing feeling that £4 billion may not be enou...
Read More