Five questions answered on the RBS investor compensation claim

There is a £3.5bn compensation claim against the Royal Bank of Scotland.

Thousands of investors have launched a £3.5bn compensation claim against the 82 per cent state owned Royal Bank of Scotland. We answer five questions on the claims.

What are this group of investors seeking compensation for?

The group are raising the claim against the bank as they believe the bank deliberately misled them into believing it was in good financial shape just before it collapsed in 2008.

After collapsing the bank was then bailed out by the government.

How many investors are involved in the suit against the bank?

12,000 private shareholders and 100 institutional investors.

These include 20 charities, churches, pension funds, hedge funds, fund managers and private client brokers, who collectively manage £200bn.

Are any individual bank members also being sued?

Yes, former chairman Sir Tom McKillop is also being sued, as well as Johnny Cameron and Guy Whittaker, who were also senior members of the bank at the time.

Former Chief Executive Fred Goodwin is also being sued by the group.

What have the investors said?

In a statement the group said:

"The action group maintains that the bank's directors sought to mislead shareholders by misrepresenting the underlying strength of the bank and omitting critical information from the 2008 rights issue prospectus.

"This means that RBS will be liable for the losses incurred on shares..."

A spokesman for the investors told the BBC: "Today represents a giant step forward for the many thousands of ordinary people who lost money as the result of inexcusable actions taken by banks and their directors in the financial crisis.

"Now, for the first time, some of these directors will have to answer for their actions in a British court."

What happens next?

The Royal Bank of Scotland has 30 days to respond to the class action which has been raised with the High Court of Justice's Chancery Division in London.

The group have estimated they could receive as much as £4bn from the claim.

Photograph: Getty Images

Heidi Vella is a features writer for Nridigital.com

Photo: Getty
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Novelty isn't enough for Emmanuel Macron and Martin Schulz

The two politicians have caused excitement - but so far, neither has had to articulate a programme. 

Emmanuel Macron’s rally in London last night was overshadowed by polling that showed him slipping back slightly as he reaped the consequences of his excessive candour on the matter of France’s rule in Algeria.  Third with Elabe, and joint-second with centre-right candidate François Fillon with Opinionway and Ifop.

As far as the polling and French history show, what matters in this contest is the race to second-place and a ticket to the second round run-off against the hard-right Marine Le Pen.

Macron’s difficulties have intensified as this is the first Wednesday in months in which Le Canard Enchaîné has not brought fresh scandal involving Fillon and his finances. The question of why Penelope Fillon and the Fillon children were paid to act as parliamentary assistants while doing no work will run and run, however, so there may be a way back for him.

Macron’s problems have an echo in Germany, where for the first time since his return to German politics, Martin Schulz is facing serious criticism over his proposed changes to the Agenda 2010 reforms of the last SPD-led government. We wait to see what if any impact that row has on his standing in the polls.

But the difficulties of Macron and Schulz speak to a wider reason why their improved standing in the polls means that the talk of the end of the European centre-left’s crisis was just that, talk.

So far, neither of them has had to articulate a programme beyond “I’m new!” in the case of Schulz and “I’m new and attractive!” in the case of Macron.

We’ve seen that Macron, a neophyte politician, has put his foot in it when asked to add substance to his considerable style. He might improve and Fillon’s ongoing problems might give him a get out of jail free card. Schulz has been around for a bit longer but he has to keep this up until October. It’s a reminder that while being new and shiny is a useful asset for a leader – it isn’t enough on its own. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.