Police may launch probe into RBS £12billion rights issue


Lothian and Borders Police is considering an investigation into whether RBS shareholders were misled at the time of the rights issue in April

Police are considering launching a probe into the Royal Bank of Scotland's £12 billion rights issue, it was confirmed today.

Scottish National Party MSP Christine Grahame has written to Lothian and Borders Police, asking them to investigate whether shareholders were misled.

Her call comes days after the bank - which has its headquarters in Edinburgh - revealed it was on course for the biggest loss in UK corporate history as it expected to write down as much as £20 billion on the falling value of its assets.

Today Ms Grahame argued that the state of the bank's finances should have been known at the time of the rights issue last April.

She alleged: 'If you are misleading people into thinking this is a stable investment, when at that stage it must be known the state of the bank's stock, if you are doing that, it's a criminal offence.'

Ms Grahame has also written to Scotland's top law officer, Lord Advocate Elish Angiolini, with the allegation.

And the South of Scotland MSP said: 'A member of the public is entitled to report something to the police if they think a crime has been committed.

'It's now up to the police to look at it with their particular remit and decide whether or not to bring their findings to the Lord Advocate.'

A Lothian and Borders Police spokesman said: 'We confirm receipt of a letter from Christine Grahame MSP and are considering the matter.'

An RBS spokesman declined to comment.

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