Tycoon alleges rate swap rigging
RBS facing legal action over Spanish property deal
Former lawyer Glenn Maud is seeking millions that his company paid, or will have to pay, claiming the deal was subject to rate rigging. It is thought £110 million has already been repaid.
Maud and Derek Quinlan, the Irish financier, bought the freehold on the building in 2008, one of a number of prime property assets such as Citigroup’s skyscraper in Canary Wharf.
Maud’s Spanish property vehicle Marme Inversiones agreed a loan arrangement with fixed interest payments using the Euribor rate – which banks use to lend to each other and which Marme alleges was being manipulated by RBS.
RBS was fined £95 million in December 2013 by the European Commission for its involvement in a cartel which had been unfairly influencing the Euribor rate.
Royal Bank of Scotland has said it would rigorously defend the claim.
If Maud is successful in his action, it could open the door to similar suits from clients who bought mortgages and loans from RBS at the time of the rate rigging.