RBS disbands global restructuring group

By Dow Jones newswires

In November last year Lawrence Tomlinson, an adviser to the UK government's department for Business Innovations and Skills, said in a report that RBS’s GRG unit regularly forced business customers to default on loans so that the bank could charge higher fees or seize their properties and sell them.

A report commissioned by the bank on its business lending found that fewer than 10 per cent of businesses referred to the GRG unit end up in bankruptcy.

But its author, former Bank of England Deputy Governor Andrew Large, said there is a potential conflict of interest at GRG because it selects the struggling businesses it works with from RBS’s larger base of customers, and aims to generate a profit.

Read more here: Business Spectator


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