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Victim, the press reports, victim really?

"Cherie Blair, the wife of former British Prime Minsiter Tony Blair, has been hired to sue the Royal Bank of Scotland. Two UK pension funds have asked the US courts to compensate them for the losses they incurred when the bank 'falsely reassured' investors the bank was in good health when it was 'effectively insolvent'." scrapbook

"Neil Moorhouse, a spokesman for RBS, said he was "unaware of the case" and couldn't provide further comment. "Bloomberg

Diversity is the key to economic and political evolution.

by Cat on Mon Apr 19th, 2010 at 11:04:32 AM EST
[ Parent ]
I can't really say I feel bad for the shareholders, especially not big ones like these pension funds. Big owners usually have their own people as members of the board to keep an eye on things, and even if they don't someone should have told them that share ownership carries with it the risk of losses. Past performance is no guarantee of future performance. If you buy shares in a company run by crooks, well, tough luck. Take a closer look at management next time.

Ergo, they just seem like sore losers.

If anyone should be going to court, it's the management for RBS for providing false information to the markets. Long jail terms for them is fine by me, but stupid shareholders should not be compensated. If they don't like risk they should put their money in German sovereign debt.

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid on Mon Apr 19th, 2010 at 11:48:51 AM EST
[ Parent ]
There are stupid shareholders and there are stupid shareholders. Over the past 2 years I've read of some pretty awful crimes perpetrated by fiduciaries e.g. real estate agents, and other money managers, engaged by clubs, pension funds, municipalities. Some have been convicted --mostly the ponzis-- but I guess, stupid shareholders are given to understand the test of harms through civil litigation is more easily satisfied than those proscribed by criminal prosecution.

Which is a pity. Civil penalty cannot stop such people. Limited liability such as it is, the entity that harbors the gumbas may bankrupt. But they prevail, hang a new, teflon shingle burnished with self-evident chutzpah, and draw the other "outguessing" shareholders that got away.

I'm not convinced as yet any prime dealer employee will ever face prison, although in the US, states' attorneys general may arrest and charge individuals at any time. DoJ doesn't require SEC permission to prosecute.

Diversity is the key to economic and political evolution.

by Cat on Mon Apr 19th, 2010 at 04:12:40 PM EST
[ Parent ]


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