20 January 2017
visit http://www.wolterskluwerfs.com

Judge orders RBS to stop using loan software

12 May 2014  |  5319 views  |  1 STOP

A US judge has ordered RBS to stop using critical trade finance software from vendor Complex Systems, according to the Financial Times.

New York district judge Katherine Forrest told the bank to cease using the BankTrade software for new trade finance transactions within 60 days and completely within a year.

The ruling comes after a six year legal wrangle which began after RBS acquired Dutch banking giant ABN Amro in 2007.

ABN Amro, through its US subsidiary LaSalle, licensed BankTrade - which is used for processing transactions such as letters of credit, loans, guarantees and fund transfers - from Complex systems.

However, ABN Amro sold LaSalle to Bank of America in a bid to scupper RBS's takeover. RBS then failed to transfer the BankTrade license yet continued to use the software.

In her ruling, Forrest says RBS could "not continue benefiting from its blatant and ongoing infringement simply because stopping that infringement will be disruptive to its business".

A hearing on damages is set for 5 June, according to the FT.

Comments: (1)

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune | 13 May, 2014, 16:50

According to Michael Lewis' Flash Boys, Goldman Sachs regularly took over open source software, made changes to it but failed to submit it back to the open source community. Now, we hear this about RBS. Even counting only the software that they pay for, banking is one of the biggest consumers for IT. If we add the rest of the software they use, they might easily top the list. 

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related company news

 

Related blogs

Create a blog about this story (membership required)
http://www.financialcrimerisk.fiserv.com/aml?r=finextravisit wavestone.co.uk

Who is commenting?

Top topics

Most viewed Most shared
Banks face big profit loss to digitisation - McKinseyBanks face big profit loss to digitisation...
15460 views comments | 86 tweets | 108 linkedin
Seven banks plan blockchain platform for SMEsSeven banks plan blockchain platform for S...
12457 views comments | 48 tweets | 44 linkedin
Accenture beats Brexit blues with largest-ever London startup programmeAccenture beats Brexit blues with largest-...
10797 views comments | 30 tweets | 20 linkedin
hands typing furiouslyBlockchain: Time To Get Your Feet Wet
7340 views 0 | 24 tweets | 9 linkedin
HSBC forms tech advisory boardHSBC forms tech advisory board
6179 views comments | 20 tweets | 22 linkedin

Featured job

to Six-Figure Base, Bonus, Benefits
London, UK

Find your next job