RBS is sued by pension funds

ROYAL Bank of Scotland is being sued by a pair of American pension funds over the collapse of brokerage firm MF Global.

The Scottish lender is among a host of investment banks – including JP Morgan, Goldman Sachs, Citigroup and Deutsche Bank – accused of making “misleading statements” about the exposure that MF Global had to eurozone government debt.

MF Global filed for bankruptcy on 31 October after making bets on European sovereign debt that were then unwound by the chaos on financial markets.

A spokeswoman for RBS yesterday declined to comment on the class action suits.