Property Investment

RBS in yet more warm water as realty group PAG wins the right to appeal Libor case decision

By  | 

The Royal Bank of Scotland (RBS) has actually not yet managed to shake its post-financial crisis headache, as one realty group has actually won the right to The High Court found in favour of RBS in December, and PAG was left empty handed. The Court of Appeal has now approved the group authorization to take the case to the next level.David Russell, PAG’s chief executive, stated: PAG is a well-funded home

business, and therefore is one of the couple of business prosecuting against RBS on these issues that is able to privately fund its action. I understand that there are numerous other cases impacted by the High Court’s judgement in our claim and I am for that reason delighted, not just for ourselves, but for all those many others, that the judgement will now be totally scrutinised by the Court of Appeal. The first accusation from PAG was that it was mis-sold four rates of interest swaps. Allegedly developed

to guard companies against the financial effects of rates of interest rises, these products were extremely successful for banks.Read more: British banks deal with landmark legal challenge over mis-selling of interest rate swaps Lots of companies rather lost out when interest rates fell. PAG felt that this possiblity had actually not been explained to them which RBS neglected to totally describe the terms– claims which were dismissed by Mrs Justice Asplin in the High Court.Second on PAG’s list of problems was that it had been mistakenly placed into the GRG, a group for small and medium-sized enterprises in financial trouble to which RBS presumably applied higher interest rates and pressured to sell assets to repay loans.But the High Court declined claims that RBS was bound to act in great faith in the relevant parts of its GRG agreements with customers.Third, PAG said that the bank had actually learnt about Libor manipulation– which it would not have participated in the rate of interest swaps if it had actually been aware

of RBS’supposed complicity in the rigging of the inter-bank lending rate.Read more:< a href =http://www.cityam.com/262792/libor-trials-we-now-and-could-have-been-very-different > The Libor trials– where we are now and how it could have been extremely different Mrs Justice Asplin dismissed all of these claims as, in spite of RBS ‘confession to misconduct relating to Japanese yen and Swiss franc Libor, there had been no findings relating to sterling Libor.A trial date for the appeal case has yet to be set.RBS already has another prominent legal challenge on its plate, as

a number of shareholders are suing the bank over claims it misled

them ahead of a ₤ 12bn fundraising round in 2008.

Source

http://cityam.com/266006/rbs-yet-more-hot-water-real-estate-group-wins-right-appeal

Follow

Follow this blog

Get a weekly email of all new posts.

Email address