Two British pension funds plan to sue Royal Bank of Scotland (RBS) chiefs for the massive losses they incurred when RBS share prices collapsed, The Times has reported.
According to the paper, former Prime Minister Tony Blair's wife Cherie has been hired to seek compensation for the pension
funds in a court hearing in New York.
The lawsuit is being taken on behalf of North Yorkshire and Merseyside council pension funds, which have a combined value of around £4billion according to reports.
Mrs Blair, QC, told The Times that she had decided to take the case on as a result of "the massive losses inflicted on local authority pension schemes and other UK institutions who were the largest investors in RBS
"It's also about the potential to protect investors in the future by significantly raising the standards for good governance in major UK companies," Mrs Blair added.
The case is expected to cover the furore over Sir Fred Goodwin's pension of around £700,000 a year, which he has famously refused to give up, despite being partly accountable for RBS's £24billion losses for 2008.
According to The Times, the class action hopes to make RBS change its corporate governance, and is taking place in the US because that is where a lot of the banks' business which led to its problems was conducted.
© Fair Investment