New Bank boss Andrew Bailey to face court grilling over RBS scandal

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New Bank of England governor Andrew Bailey to face court grilling over RBS scandal

By Daily Mail City & Finance Reporter

Published: | Updated:

Headache: New Bank of England boss Andrew Bailey 

The Bank of England’s new Governor is preparing to defend himself in court alongside RBS in a fresh claim brought by a victim of the lender’s toxic Global Restructuring Group (GRG).

Andrew Bailey and the Financial Conduct Authority (FCA) are named as defendants in a legal claim brought by Chris Gordon, 44, a former property developer.

It is another headache for Bailey, head of the FCA, who is to be grilled by the Treasury Select Committee today over whether he is the right person to take over as Governor of the Bank of England this month.

In a trial due to be heard in a Belfast High Court later this year, Gordon alleges RBS deliberately ran his property development business into the ground following the bank’s £45.5billion taxpayer bailout in 2008.

He claims RBS, through its subsidiary Ulster Bank, fraudulently or negligently advised him to take out complicated interest rate hedging products on his loans.

Gordon also alleges that Bailey and the FCA failed in their duty to supervise RBS.

An FCA spokesman said: ‘Mr Gordon has issued a claim in Northern Ireland against a number of parties. Mr Bailey and the FCA maintain that the claim is without merit.’

RBS declined to comment.

 

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