RBS accused of Diversion over Malpractice Report

Bank Accused of Misdirecting Attention from Lawyer’s true findings
By Ian Fraser 

RBS has been accused of using diversionary tactics by Lawrence Tomlinson, an adviser to Vince Cable, after a report into accusations of malpractice by the bank.

Tomlinson told the Sunday Herald the substance of the RBS report, conducted by lawyers Clifford Chance, corroborates many of his findings about the bank’s Global Restructuring Group (GRG), which is accused of deliberately undermining viable client companies.

http://www.heraldscotland.com/business/company-news/rbs-accused-of-diversion-over-malpractice-report.24001423

By |April 20th, 2014|All Banks|0 Comments
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    7 Things RBS Hoped You Would Not Notice In Its Clifford Chance Report

7 Things RBS Hoped You Would Not Notice In Its Clifford Chance Report

The Royal Bank of Scotland welcomed a report it commissioned by Clifford Chance which found “no evidence” that it tried to systematically defraud small firms, whilst others condemned it as a “whitewash”.
CEO Ross McEwan said: “We could not let this allegation hang over us. That’s why we acted quickly to appoint Clifford Chance to get to the truth of this claim. We are determined to earn back the trust of our customers.”
The report was commissioned in response to allegations in […]

By |April 20th, 2014|All Banks, RBS, SME|0 Comments
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    GRG Business Action Group Plans Further Exposure of Wrong Doing

GRG Business Action Group Plans Further Exposure of Wrong Doing

Inquiry clears bank of forcing firms into bankruptcy but criticises business culture.
Neil Mitchell, who heads an action group that plans to sue RBS over GRG, said he had not expected the report to find evidence of wrongdoing. “Now that it is published, we can get on with further exposures and actions planned on behalf of the over 2,000 cases now in circulation and seek retribution,” he said.

Clifford Chance publicised its review, which had been due to come out at […]

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    Clifford Chance Review Of Allegations By Dr Lawrence Tomlinson

Clifford Chance Review Of Allegations By Dr Lawrence Tomlinson

Clifford Chance refuted Mr Tomlinson’s claims and said it could find no instances of the types of behaviour the businessmen described in his own report, which alleged viable companies had been forced into administration through disproportionately high fees and their assets sold off at below market prices to subsidiaries of RBS.

“The bank has no financial incentive to unnecessarily bring about the customer’s insolvency by imposing unaffordable interest and fees. We found no examples where the bank deliberately charged interest […]

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RBS: No evidence of small firm fraud

Royal Bank of Scotland says law firm Clifford Chance has cleared it over allegations that it forced small firms to close so it could make a profit.
The bank asked the law firm to look into the claims in November 2013 after a report criticised it for its treatment of small firms.
The law firm concluded that there was no evidence to support the allegations.
RBS chief executive Ross McEwan welcomed the findings, calling the allegations “serious and damaging”.
Clifford Chance was appointed by […]

FCA Reports Surge in Useful Tips From Whistleblowers

The figure provides a boost for the regulator, which last year came under fire from a report by the Parliamentary Commission on Banking Standards that criticized the FCA’s handling of whistleblowing. The report said the commission had received evidence from whistleblowers that “demonstrated a lack of confidence in the regulator’s willingness and ability to support them and to act upon their concerns.”
The report made a number of recommendations, including that the FCA provide feedback to whistleblowers—a policy that the […]

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Whistleblower reveals errors in Barclays PPI calculations

Barclays has launched an investigation after a whistleblower warned of serious errors in the way taxation of interest paid to those handed payment protection insurance compensation is being calculated by the bank.

Barclays confirmed the inquiry in the wake of allegations tabled by a former contractor, Charlie Boyle, who has alerted the Financial Conduct Authority’s whistleblowing hotline to the issues.

Mr Boyle, who was a team leader handling financial reconciliations – or making the numbers add up – said his department […]

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Vince Cable hires ‘resident entrepreneurs’

Two “entrepreneurs in residence” have taken up roles as government advisers and identified small companies’ struggle to access bank finance as their top priority.

Lawrence Tomlinson and Rekha Mehr will work one day a week at the Business Department, with Vince Cable describing the appointments as “important voices for business”.

The Business Secretary said they would help the Government “address the needs of small and medium-sized businesses”. Mr Tomlinson runs the Leeds-based LNT Group, which has a £100m turnover with interests […]

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FSB – Only 37% of SMEs Aware of Funding Alternatives

A recent survey from the Federation of Small Businesses found that just 37% of SMEs knew about them.
When Simeon Penn, director of powerboat experience company Saber Powersports, needed a loan for a new boat, he didn’t go to his bank.  Instead, he got the money from Funding Circle, an online marketplace that allows individual savers to lend money directly to small and medium-sized businesses (SMEs).
Mr Penn’s accountant suggested he try this alternative form of funding after the bank failed […]

Co-op Bank Confirms losses of £1.3bn

The Co-op Bank has confirmed it made a loss of £1.3bn last year and will remain loss-making for the next two years as the troubled lender published its twice delayed annual results.

The lender said it had begun talks on a £400m fund raising and warned that without the new money it would be in breach of its minimum capital requirement.

Niall Booker, chief executive of the Co-op Bank, apologised for the situation and said the lender would be clawing back […]

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    Co-op Bank chief Niall Booker to get £4.6m in first 18 months

Co-op Bank chief Niall Booker to get £4.6m in first 18 months

Niall Booker is in line to receive at least £4.6m for his first 18 months as chief executive of the Co-operative Bank – almost equal to the amount the stricken lender has decided to withhold from former executives.

Full Story in the FT - By Andy Sharman and Sharlene Goff

http://www.ft.com/cms/s/0/dd294a2c-c140-11e3-97b2-00144feabdc0.html#axzz2yZSVV500

 

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By |April 11th, 2014|All Banks, co-op|0 Comments

FCA Appointed Independent Reviewer Leads Inquiry into FCA

1st April 2014 – Fools Day
The Treasury Committee agreed to hold an evidence session with the independent reviewer who will be appointed by the Financial Conduct Authority to lead its inquiry into the Financial Conduct Authority’s treatment of market sensitive information, they have yet to announce his/her identity.
The Chancellor of the Exchequer has also written to the FCA expressing profound concern and outlining some areas that he thinks the review should address.

Chair’s comments
Andrew Tyrie MP, the Chairman of the Treasury Committee, […]

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Whistle Blower launches Action Group to fight RBS

Former Torex Retail boss Neil Mitchell has formed an action group and engaged litigation specialist Enyo Law with the aim of filing a multi-billion pound lawsuit against Royal Bank of Scotland.

Mr Mitchell, who uncovered a fraud at the software company and was fired for his trouble, will act as the chairman of the not for profit organisation.

He said the RBS GRG Business Action Group had been founded to “to support UK Business” in anticipation of a “multi billion claim to […]

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Asset Based Lending extension for SME manufacturers

Small and medium sized manufacturing businesses will be able to use their assets to borrow cash thanks to a newly created team at RBS and NatWest.

Asset based lending (ABL) is a well established funding mechanism which allows companies to borrow money against its assets including existing stock and equipment.

The newly established team includes 11 specialist finance managers who facilitate deals across the UK – specifically for businesses with a turn over of between £10 million and £25 million.

Although RBS […]

Reminder – Treasury Commitee SME Lending Inquiry Deadline

Deadline for submissions is Friday 28 March 2014, written evidence invited by members of the public.

Send a written submission to the inquiry

If you are considering sending a written submission please read the following guidelines:

Guidance on written submissions

Following its recent evidence sessions with Sir Andrew Large, Laurence Tomlinson and the Financial Conduct Authority, the Treasury Committee has announced that it will be conducting a short inquiry into SME lending.

The inquiry will focus on three issues; access to finance for SMEs, the scope for opening […]

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By |March 25th, 2014|All Banks|0 Comments

Osborne Accused of Handing Big Banks ‘Secret Tax Cut’

Chancellor’s pledge to introduce new bands for the bank levy mean some big banks could end up paying hundreds of millions of pounds less in tax.
Britain’s biggest lenders are in line for hundreds of millions in tax cuts under proposed changes to the bank levy after complaining that the burden fell disproportionately on domestic institutions.

Barclays and HSBC could see their levy charges fall by a combined total of more than £300m if the Treasury goes ahead with plans to […]

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Lloyds Employee who stole £226,508 from Pensioners Receives 2 year Suspended Sentence

A senior financial advisor has walked free from court despite stealing more than £200,000 from the life savings of six pensioners and blowing it all on football bets. ‘They were people Mr Burnett met face to face or on the telephone and then swindled them of their life saving. Hull Crown Court heard how he ensured his elderly victim’s did not find out about his swindling by diverting their bank statements. 
Although Lloyds Bank dismissed Burnett when the fraudulent behaviour came to […]

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    Lloyds Top Management Bonuses potentially worth more than £27m

Lloyds Top Management Bonuses potentially worth more than £27m

Lloyds chief executive António Horta-Osório: the bank has handed its top management team bonuses potentially worth more than £27m. Photograph: Afp/AFP/Getty Images

Bailed-out Lloyds Banking Group has handed its top management team – including chief executive António Horta-Osório – bonuses potentially worth more than £27m.

The announcement by the 33% taxpayer-owned bank covers awards of bonuses for 2013 and 2014 – some of which do not pay out for three years – and follows its disclosures this month that its senior executives shared £12m of bonuses that had […]

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BoE was badly mistaken to trust banks, says Adam Posen

Ex-MPC member believes BoE staff had too much confidence that banks would regulate themselves and root out bad behaviour by traders

The Bank of England needs to abandon a culture of cosy chats and too much trust in banks following the latest financial scandal to hit London, former policymaker Adam Posen has said.

BoE Governor Mark Carney unveiled a major shake-up of its management on Tuesday, in part to tackle complaints from lawmakers that the central bank had been too slow […]

By |March 23rd, 2014|All Banks, BoE|0 Comments

RBS Claims No Wrongdoing but High Court Judge gives Green Light to Sue

A Plymouth family have won a landmark case giving them the green light to sue Royal Bank of Scotland for millions over the alleged mis-selling of interest rate swaps that ultimately left them with crippling borrowing costs on a £55m loan.

Michael and Diane Hockin saw the property empire they had built up over 30 years snatched out of their hands when the bank’s Global Restructuring Group (GRG) put it into administration in 2012. Since then their London and Westcountry […]

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By |March 23rd, 2014|All Banks, RBS|0 Comments