Submitted on Thursday 14th May 2009

Sir Fred knew about toxic debt?

Billions of pounds of toxic sub-prime mortgages were bought by Royal Bank of Scotland traders in a spree that was not disclosed to bank board. Sir Fred Goodwin is under pressure to disclose what he knew of the sub-prime trading  

The sub-prime assets are being blamed for causing the bank’s near collapse last year. Last month RBS posted a loss of £28 billion – the largest in British corporate history.  

Sir Fred repeatedly put out statements to the City saying that RBS “don’t do sub-prime” even though traders were buying the sub-prime assets. RBS board directors suspect he may have acted negligently.

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