A special investigation has uncovered secret RBS files which show the bank deliberately crippled thousands of businesses during the recession to add billions to it’s balance sheet.
The internal documents revealed today by BuzzFeed News expose the policies which forced businesses into the now notorious Global Restructuring Group (GRG) which chased profits by hitting it’s customers with large fees and then buying their assets at rock bottom prices.
The files reveal for the first time that under pressure from the government, the bank ran down businesses in it’s restructuring unit as part of a deliberate and premeditated strategy to cut lending and boost profits. The documents also show that GRG ignoring repeated warnings about conflict of interest, collaborated closely with the bank’s own property division West Register to buy heavily discounted assets the bank had forced it’s customers to sell.
It is a very different picture from the one the self proclaimed ‘most trusted bank’ are currently trying to paint but for those who have been mistreated at the hands of the bank the investigation will offer up shocks but very few surprises.
berg Chief Executive Alison Loveday spoke to Buzzfeed and said
“berg have dealt with ‘ hundreds of cases’ in which healthy firms were “devastated by GRG’s activities” and has called on the FCA to take urgent action to ensure business owners are properly compensated for the loss and damage they have suffered”
The emergence of the files of course casts serious doubt on the official investigation led by Clifford Chance in 2014 and will throw up some serious questions for the FCA, the regulatory body tasked with the latest investigation into the bank. Let us hope that this is finally the catalyst needed to force the regulator to act decisively and provide some closure for the thousands of businesses left in the wake of RBS’ destruction.
You can read the full report here
If you have been affected by the activities of RBS and it’s GRG division and believe you are entitled to compensation we urge you to take immediate to progress your claim.