Small firms at mercy of RBS, says report
The Royal Bank of Scotland faced fresh damage to its reputation on Monday after the British government handed financial watchdogs a report claiming it forced small firms to default in order to seize their assets.
The Royal Bank of Scotland faced fresh damage to its reputation on Monday after the British government handed financial watchdogs a report claiming it forced small firms to default in order to seize their assets.
Business Secretary Vince Cable confirmed on Sunday that he had given the report, written by Lawrence Tomlinson from the Department for Business, Innovation and Skills, to the Financial Conduct Authority and the Prudential Regulation Authority.
The report, published on Monday, has been compiled over the past six months and focuses on claims against the bank’s global restructuring group (GRG), which deals with risky loans.
RBS – 81 per cent owned by the state following its near collapse during the 2008 financial crisis – announced on November 1 it was to create an internal “bad bank” to run down £38 billion (HK$478 billion) of high-risk assets as the government looks to return the rescued lender to the private sector.
There are many devastating stories of how RBS has wrecked good businesses and the ruinous impact this has on the lives of the business owners
The report alleges the bank hit seemingly healthy businesses with unmanageable charges and rates before seizing their assets at a knock-down price.
