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April 3, 2009

RBS announces more job cuts and appeals for charity

by Gill Montia

Story link: RBS announces more job cuts and appeals for charity

Royal Bank of Scotland (RBS) has announced ahead of today’s annual general meeting of shareholders that it will be cutting further jobs worldwide.

The cull will be in addition to the 2,700 headcount reduction already planned.

The bank’s chairman, Philip Hampton said: “We can only be honest and say that this will not be the end of the story and more job cuts are expected in the UK and internationally in the period ahead.”

Mr Hampton has also appealed for an “end to the public flogging” of RBS which has taken a major role in the UK banking sector failures that contributed to the credit crisis.

The group’s directors will today face shareholders, some of whom invested in a £12 billion rights issue shortly before the bank’s near collapse and then watched their investments dwindle as Government support took the group into majority state-ownership.

The new RBS leadership says now is the time to create a “firebreak” between the bank’s recent past to allow it to get on and return to profit.

However, according to a BBC report, RBS shareholder action group spokesman, Michael Lamoureux, has accused the bank of perpetrating “the biggest crime in financial history in the UK” via its rights issue.

Legal action is threatened, which would be in addition to a class action brought in the US by local authority shareholders in Merseyside and North Yorkshire.

The entire RBS board at the time of its near collapse is reportedly named in the law suit.

 

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