Royal Bank of Scotland has almost doubled its compensation offer to the investors who lost money during the bank’s near collapse in 2008.
According to the FT, RBS is offering shareholders 82p a share, far above the 43.2p share previously suggested, on the back of weekend talks prior to the court hearing this morning. RBS declined to comment.
Around 9,000 RBS shareholders are calling for £520m in compensation from the bank and four former directors, including former RBS boss Fred Goodwin. The shareholders claim they lost money prior to the bank’s £45bn Government bailout having been misled about the bank’s health and asked to fund a £12bn rights issue on the promise of discounted shares.
The case at London’s High Court is set to last 14 weeks, the BBC reports, and could result in a final payment of £700m to the individuals and 18 institutions.
RBS remains 72 per cent taxpayer-owned, although in April, Chancellor Philip Hammond said the Government was prepared to sell its stake at a loss. In February the bank reported an annual loss of £7bn for 2016.