PRESS: Metro Bank Faces Lawsuit Over Accounting Error - Daily Mail

LONDON (Alliance News) - Metro Bank PLC faces an investor lawsuit after the retail bank's ...

Alliance News 2 February, 2019 | 1:02PM
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LONDON (Alliance News) - Metro Bank PLC faces an investor lawsuit after the retail bank's disclosure of an accounting error wiped GBP1 billion of its market capitalisation, the Daily Mail reported Friday.

The newspaper said Metro Bank is being targeted by Therium, which funds major lawsuits by investors.

https://www.thisismoney.co.uk/money/markets/article-6658553/After-shareholders-lose-1-1bn-finance-gaffe-Metro-Bank-facing-investor-lawsuit.html

On Thursday, Metro Bank confirmed it was UK regulators who initially uncovered irregularities in the lender's loan book and not the company itself.

Shares in the FTSE 250-listed bank have dropped 46% since Wednesday, January 23, when it revealed the accounting error. The company's market cap now stands at GBP1.17 billion.

Metro Bank released a trading update that day indicating its risk-weighted assets had increased 51% to GBP8.9 billion from GBP5.9 billion. Metro attributed the rise to an adjustment to the treatment of certain commercial loans and specialist buy-to-let loans.

The lender said it realised the mistake in an internal review. The Daily Mail, however, reported this past Wednesday that it was in fact the Bank of England's Prudential Regulation Authority that flagged the error.

By Tom Waite; thomaslwaite@alliancenews.com

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
Metro Bank PLC 813.00 -
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