Yahoo Finance Goodwin In The Clear Over RBS Share Sale
No individuals, including former boss Fred Goodwin, are to face charges over events that sparked the near-collapse of Royal Bank of Scotland (LSE: RBS.L - news) (RBS) at the start of the financial crisis.
The announcement was made by Crown Office prosecutors in Scotland following a five-year inquiry into whether shareholders were criminally wronged when the bank launched a £12bn cash call in 2008.
Its statement said: "The Crown's investigation focused on the rights issue of April to June 2008, and involved detailed consideration of whether there was any evidence of criminal conduct associated with the rights issue.
"Following careful examination of all the evidence seen to date, Crown (Other OTC: CWLDF - news) counsel have decided that there is insufficient evidence in law of criminal conduct either in relation to RBS as an institution or any directors or other senior management involved in the rights issue.
"If any further evidence comes to light which is relevant to this inquiry it will be considered by the Crown and we reserve the right to make further inquiry, if considered appropriate."
The bank was run, at the time of the £12bn cash call to shareholders, by Sir Fred Goodwin who has faced no legal or regulatory sanction in connection with events that led to its bailout.
He lost his job at that time and was subsequently stripped of his Knighthood in 2012.
:: What Went Wrong At RBS?
Goodwin (Stuttgart: GDW.SG - news) earned the nickname 'Fred the Shred' for the bank's habit, during his tenure as chief executive, of aggressively cutting costs while also spending big on acquisitions, including the near-£50bn purchase of Dutch lender ABN Amro.
The deal proved toxic and, just months later, the value of RBS shares plunged 90% and the Government had to step in.
The bank went on to report a financial loss for 2008 of £24bn - the largest in corporate history. It (Other OTC: ITGL - news) remains loss-making as it continues to get its house in order.
The Government, which still owns 73% of RBS stock, has admitted it is likely to make a loss on the return of shares to private hands.
:: RBS To Axe 200 Jobs And Close More Branches
The Crown Office said its inquiry team had examined more than 160,000 documents and was assisted by financial regulators and banking institutions, including the Financial Conduct Authority, the Prudential Regulation Authority and the Serious Fraud Office.
An RBS spokesman said: "We cooperated fully with the investigation and we note today’s decision."
It could be viewed positively for groups representing former and current RBS shareholders who are pursuing civil claims worth £4bn against those in charge at the bank at the time of its rescue, as no criminal proceedings are risking delays to their case.
