Further Troubles for RBS

Recent news is that The Royal Bank of Scotland are set for another rocky road where their finances are concerned. Companies in the US have launched complaints and are taking legal action against the bank leading several UK companies to follow suit. RBS are being accused of not disclosing the full extent of their problems last year and now may be liable to have to pay out compensation, something that can’t be good for them at a time when they have only just received help from the Government.

Not only will this story create unwanted attention at this time, but it has been reported that Tony Blair’s wife, Cherie Booth will be representing them, has this been a stipluation as a result of the Government takeover?  Ms Booth is more commonly known for UK and European human rights law, not necessarily litigation, however RBS must know what they’re doing?

The two UK companies embroiled in this concern are The Merseyside and North Yorkshire Pension Funds who are dissatisfied with the bank and its management not making known what’s been occuring with regards to its shareholders. Having gained £12bn from its shareholders in June last year, there is now anger that if they’d known the true level of trouble the bank was in, would they have risked their shares and lost out on money?

This piece of news just goes to show how fickle the economy is at the moment, just when it appears to be going well, something comes along and changes the outlook. Just as you would be careful with the whereabouts of your money at the moment, also be just as aware as to where your risks will take you.