Royal Bank of Scotland’s latest legal battle will begin today, in a trial which will see its former restructuring boss questioned in court for the first time.
Derek Sach, 71, who headed RBS’s toxic Global Restructuring Group (GRG), will answer questions on claims that the Government pressured the unit to seize small businesses which had taken loans from the bank so it could sell their assets to boost profits.
Questions to answer: The alleged misconduct occurred in the wake of the financial crisis, when the Government owned more than 80 per cent of RBS
The alleged misconduct occurred in the wake of the financial crisis, when the Government owned more than 80 per cent of RBS following a £45.5 billion taxpayer bailout.
The case at the Royal Courts of Justice is brought by property developer Oliver Morley, 49, a former RBS customer who claims GRG ‘stole’ his £125m property empire.
His legal team will claim senior staff at the bank’s notorious restructuring unit were awarded bonuses based on targets set by an arm of the Treasury.
He told The Mail on Sunday: ‘The case is costing me millions but it is worth every penny.It was a complete robbery. I cannot rest until I have some form of justice.’
RBS said that it will defend the claim ‘vigorously’.