Confirming the writer’s impression derived from reports of West Midlands manufacturers who have ‘gone into administration’, Business Secretary Vince Cable today passed a report by Lawrence Tomlinson (Business, Innovation and Skills) presenting evidence to ‘watchdogs’, Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA).
It relates to RBS’ treatment of small businesses. Allegations that the bank seized assets from firms to benefit its own property empire are said to focus on RBS’ Global Restructuring Group (GRG) lending division, which handles loans classed as being risky. GRG is said to have the power to scrap loan deals, impose inflated interest rates and charge hefty penalties.
Mr Tomlinson (opposite) told the Sunday Times: “There is a wealth of evidence which suggests that RBS has forced healthy, vibrant businesses into financial trouble and… seized their assets to benefit its own vast property empire.”
Vincent Mr Cable recognises the seriousness of allegations and is waiting for an urgent response as to what actions have been taken, ending:
“I am however confident that the new management of RBS is aware of this history and is determined to turn RBS into a bank that will support the growth of small and medium sized businesses.”
Not before time!