RBS bosses face court as tycoon Stuart Wall brings Libor action

Evening Standard, 19.10.16


Senior figures tied to RBS may be called to give evidence in the High Court next year over allegations they knew Libor was rigged in the run-up to the global financial crisis.


Former RBS investment bank boss Johnny Cameron and current group treasurer John Cummins are among several of the bank’s staff named in fresh court filings.


The case is being brought by property tycoon Stuart Wall, who founded student digs firm Opal Property Group.


He is suing the bank for about £400 million, alleging it mis-sold the group an interest-rate swap and forced it into administration.


Wall claims the senior staff knew sterling and dollar Libor rates — which underpinned the swap — were false and that the bank was “low-balling” its submissions to appear more creditworthy and to benefit its own swaps and derivatives trades.


According to case evidence filed at the High Court this month, Cummins wrote to Cameron in November 2007, telling him Libor rates were a “red herring”.


RBS has admitted manipulating yen and Swiss franc rate-fixing in 2013 but has always denied fixing sterling and dollar Libor.


RBS said it rejects all of Wall’s allegations and will continue vigorously to defend the claim.


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