John
03-16-2009, 05:12 PM
Pension funds representing council workers in North Yorkshire and Merseyside have hired Coughlin Stoia to press claims in a US court that RBS "falsely reassured" investors over the state of the bank.
Coughlin has also drafted in Cherie Booth - wife of former Prime Minister Tony Blair and QC at Matrix Chambers - as a special adviser on the case.
The class action alleges RBS was "virtually insolvent" due to huge losses in its US investment banking operation, while directors including former chief executive Sir Fred Goodwin claimed the bank was well-capitalised.
Coughlin partner Patrick Daniels said: "We will be pursuing this claim relentlessly in order to bring the executives, especially Sir Fred Goodwin, and this bank to book."
Sir Fred, who stepped down as chief executive last November, has already sparked outrage when details of his £703,000 pension emerged. RBS lost a UK record £24.1 billion last year.
Ms Booth added: "This is a significant case not only for the massive losses inflicted on local authority pension schemes and other UK institutions who were the largest investors in RBS, but also for the potential to protect investors in the future by significantly raising the standards for good governance in major UK companies."
The North Yorkshire pension fund has 58,000 members in total. The bigger Merseyside fund has around 100,000 members, representing current and former workers of Liverpool, Sefton, Wirral and Knowsley councils.
A North Yorkshire county council spokesman said: "North Yorkshire County Council invested £23 million in RBS and the resulting damage will be determined by the litigation process.
"This process does not affect individual people who are entitled to pensionable benefits. The action has been taken to safeguard the value of the fund in the long term."
Coughlin has also drafted in Cherie Booth - wife of former Prime Minister Tony Blair and QC at Matrix Chambers - as a special adviser on the case.
The class action alleges RBS was "virtually insolvent" due to huge losses in its US investment banking operation, while directors including former chief executive Sir Fred Goodwin claimed the bank was well-capitalised.
Coughlin partner Patrick Daniels said: "We will be pursuing this claim relentlessly in order to bring the executives, especially Sir Fred Goodwin, and this bank to book."
Sir Fred, who stepped down as chief executive last November, has already sparked outrage when details of his £703,000 pension emerged. RBS lost a UK record £24.1 billion last year.
Ms Booth added: "This is a significant case not only for the massive losses inflicted on local authority pension schemes and other UK institutions who were the largest investors in RBS, but also for the potential to protect investors in the future by significantly raising the standards for good governance in major UK companies."
The North Yorkshire pension fund has 58,000 members in total. The bigger Merseyside fund has around 100,000 members, representing current and former workers of Liverpool, Sefton, Wirral and Knowsley councils.
A North Yorkshire county council spokesman said: "North Yorkshire County Council invested £23 million in RBS and the resulting damage will be determined by the litigation process.
"This process does not affect individual people who are entitled to pensionable benefits. The action has been taken to safeguard the value of the fund in the long term."