The CEO of Royal Bank of Scotland, Ross McEwan, faces calls from MPs to discuss the unfair treatment of businesses transferred to the bank’s now-defunct turnaround division, the Global Restructuring Group, as reported by This is Money.
The boss of the high street bank, Royal Bank of Scotland, is set to answer questions put forward by MPs of the all-powerful, Treasury Select Committee later this month (January 2018).
The global consulting firm, Promontory Financial Group, who chaired a report into the bank’s business support unit will also attend the Treasury Select Committee hearing, as Ross McEwan disputes the actions of the notorious Global Restructuring Group.
Promontory found that GRG staff took advantage of businesses by extracting them of cash and pushing many into liquidation. SMEs under the management of the Global Restructuring Group experienced ‘inappropriate actions’, such as aggressive restructuring and extortionate management fees.
Last year, the leaked FCA report found that 92% of businesses were mistreated by the bank and that just 10% of companies returned intact to the main bank.
Ross McEwan said in response to the summary report,
“We have acknowledged for some time that mistakes were made and have apologised that we did not always provide the level of service and understanding we should have done for these customers in the aftermath of the financial crisis.
“The regulator has again confirmed that the remediation steps we announced in November to address concerns for customers are appropriate. Any customer who feels they were treated inappropriately whilst in GRG should make use of the complaints process.
“The culture, structure and way RBS operates today have all changed fundamentally since the period under review. We have made significant changes to deal with the issues of the past, so that the bank can better support SME customers in financial difficulty whilst also protecting the bank’s capital.”
For more information on the Global Restructuring Group, download our GRG guide. If you would like to get in touch with a member of the Seneca Banking team, call us on 01204 322805 or complete our online contact form.