Crown finds no evidence of criminal conduct at RBS over 2008 rights issue

The Crown’s five-year investigation into the failure of the bank, the biggest corporate disaster in British history, has ended with no action being taken against former chief executive Fred Goodwinand his colleagues.

A spokesperson said the Crown’s investigation in the wake of the FCA report in 2011 focused on the rights issue between April and June 2008 and whether there was criminal conduct associated with it.

Media reports suggest more than 63,000 small shareholders lost money, with many more affected through their pension funds.

The greatest average loss, of almost £5,500, was suffered by 1,700 Edinburgh-based investors.

The COPFS spokesperson said: “If there were such evidence those responsible would face prosecution. If not, the public in Scotland could be reassured that the matter had been properly investigated.

“This was an extremely complex investigation which included the examination of over 160,000 documents by a team of specialist forensic accountants and banking experts, supervised by the Serious and Organised Crime Division.

“The investigation involved close co-operation with a range of financial regulators and banking institutions, including the Financial Conduct Authority, the Prudential Regulation Authority, the Federal Reserve Bank of New York, the Serious Fraud Office and the Financial Reporting Council.”

They added: “Following careful examination of all the evidence seen to date, Crown Counsel have decided that there is insufficient evidence in law of criminal conduct either in relation to RBS as an institution or any directors or other senior management involved in the rights issue.

“If any further evidence comes to light which is relevant to this enquiry it will be considered by the Crown and we reserve the right to make further enquiry, if considered appropriate.”

A civil action is being brought against the bank by shareholders and is due to be heard in England next March.