Here's three interesting items about Royal Bank of Scotland.
The Independent reports that Royal Bank of Scotland (RBS) is set to axe Hoare Govett as its broker, just months after selling the historic City institution as part of a dramatic scale-back in investment banking.
The state-backed bank has kicked-off a process to replace Hoare Govett, one of the Square Mile's oldest brokers, which is understood to have attracted the interest of some of the biggest names in the field. JP Morgan, Goldman Sachs and Morgan Stanley are among those said to be looking to pitch.
In the meantime, The Telegraph reports that RBS is facing a $100m court battle in America over allegations it lied to clients and committed fraud.
The state-backed lender and two employees in the capital markets arm – former leveraged loan trader Sam Griffiths and lawyer Stewart Hall – have been accused of 'fraudulent inducement, fraud and unjust enrichment'.
A judge found RBS’s main witness, Griffiths, had 'unclean hands' that were 'relevantly grimy'.
The judgment is the latest leg in a long-running dispute between RBS and US hedge fund Highland Capital over a $300m financing deal.
Cliff Knuckey, who rose to the rank of Detective Inspector, was hired by RBS to help safeguard its ‘integrity’.
It is understood the bank has now suspended him, pending the outcome of the inquiry.
Knuckey said it would be ‘inappropriate’ to comment while the inquiry was ongoing.
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