BullyBanks joins FCA probe into Royal Bank of Scotland

The Financial Conduct Authority has written to consumer groups, including lobby group BullyBanks, asking them to contribute to its review into the behaviour of Royal Bank of Scotland’s controversial Global Recovery Group.

The review was set up by the regulator in the wake of a report published in November by entrepreneur Lawrence Tomlinson, which claimed that RBS deliberately forced healthy firms into its recovery unit in order to make a profit when they went bust. 

While RBS fiercely denied the claims, […]

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Bank of England cuts 100 jobs in biggest cull for a decade

Union expresses shock as review initiated by Bank governor Mark Carney focuses cuts on IT and HR staff

Pedestrians and workers outside the Bank of England. The Bank says it ‘envisages between 80 and 100 redundancies’. Photograph: Bloomberg/Getty

The Bank of England has announced its biggest jobs cull for more than a decade, with 100 positions to go as part of an efficiency drive.

The “value for money review”, which was launched shortly after Mark Carney arrived as governor last year, puts as many […]

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Reckless legacy of RBS triggers shock £8bn loss warning – but pay top execs 200% bonuses?

Royal Bank of Scotland pledged last night to ask shareholders to let it pay top executives bonuses worth double their salaries despite a shock profit warning that will result in the bank reporting losses up to £8bn.

In an unscheduled trading update the bank said it was setting aside another £2.9bn to cover costs arising from “past conduct issues” – fines and settlements of scandals such as mis-selling subprime mortgage backed securities in the US and payment protection insurance and […]

By |February 2nd, 2014|FCA, RBS|0 Comments
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    Update on independent review of RBS’s treatment of business customers in financial difficulty

Update on independent review of RBS’s treatment of business customers in financial difficulty

The Financial Conduct Authority (FCA) has appointed Promontory Financial Group and Mazars to conduct an independent skilled persons report under section 166 of the Financial Services and Markets Act (FSMA) 2000.

The report will examine Royal Bank of Scotland’s (RBS) treatment of business customers in financial difficulty and consider allegations of poor practice set out in the report by Dr Lawrence Tomlinson and referenced in Sir Andrew Large’s report.

The first stage of the review will consider RBS’ treatment of a […]

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    More competition in banking depends upon a more feasible plan

More competition in banking depends upon a more feasible plan

Ed Miliband has picked a reasonable fight with big bank bosses, but his suggested structure leaves much to be desired.  His desired structure – two new challenger banks created via divestments of branches by the current big banks – looks unworkable.  Too crude. Too costly. Too time consuming. Ed Miliband should prepare for more attacks along these lines. Executives at big banks simply hate the idea that they should be made to unload parts of their organisations.

Some of the objections carry […]

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RBS keeps quiet about claims of unfairness

While Lawrence Tomlinson of the business department testifies against it, the bank’s own version of events is to be held back. Tomlinson will make his case against RBS in front of the Treasury select committee this week.

When you’re expected in a debate, but fail to turn up, the results can be disastrous. Just ask Roy Hattersley about Have I Got News For You.

So Royal Bank of Scotland may be in for a tricky few days as one of the […]

By |January 27th, 2014|All Banks, RBS|0 Comments
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    David Cameron ‘Treating Us Like Mugs’ Over RBS Bonuses – Labour

David Cameron ‘Treating Us Like Mugs’ Over RBS Bonuses – Labour

David Cameron has been accused of treating Brits like “mugs” after announcing the continuation of a £2,000 cap on cash bonuses at the Royal Bank of Scotland, while doing nothing to stop individuals getting bumper bonuses through share awards.
Labour’s shadow foreign secretary Douglas Alexander told the BBC’s World At One that Cameron was “treating us like mugs”, while Labour’s shadow treasury spokesman Chris Leslie derided the Prime Minister’s pledge as “sophistry” and “warm words”.
Leslie added: “David Cameron has refused to […]

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By |January 27th, 2014|All Banks, RBS|0 Comments

FCA Review of Tomlinson Report on Banking Poor Practices

The Financial Conduct Authority has kicked off its independent review of Royal Bank of Scotland’s treatment of business customers in financial difficulty by appointing the Promontory Financial Group and Mazars to conduct the report.

The regulator confirmed in a statement that the two groups will conduct an independent skilled persons report under section 166 of the Financial Services and Markets Act (FSMA) 2000 which will examine RBS’s treatment of business customers in financial difficulty.

It will also consider allegations of poor […]

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By |January 17th, 2014|All Banks, RBS|0 Comments

Tomlinson Report

Lawrence Tomlinson published the findings of his report  in November 2013 on banks’ treatment of businesses. Lawrence’s report focuses on the large body of evidence he has received about RBS’ turnaround division, Global Restructuring Group (GRG).  He has uncovered very concerning patterns of behaviour leading to the destruction of good and viable UK businesses.     Lawrence, who is the Entrepreneur in Residence at the Department for Business, Innovation and Skills, is calling for further investigation into this behaviour by the […]

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    Labour calls on Coalition to rein in excessive Bankers bonuses

Labour calls on Coalition to rein in excessive Bankers bonuses

The Labour party has called on the government to act upon EU rules that would cap the bonuses paid to banking executives.
Chris Leslie MP, Labour’s shadow chief secretary to the Treasury, made the calls after reports that the cap is set to be doubled by the chancellor George Osborne.
He said that approving the increase “cannot be right” at a time when families are facing a cost of living crisis and bank business lending was “failing”.
“As the majority shareholder, the government should reject any […]

By |January 16th, 2014|All Banks, Barclays, RBS|0 Comments

RBS considers how to maintain Multimillion pound Bonuses

The Bank which is 81% owned by taxpayers is keen to keep pace with Barclays and HSBC, which plan to hand out ‘allowances’
Royal Bank of Scotland said it was consulting shareholders about pay, but had made no decisions yet.  The Bank risks fuelling the row over pay as it considers how to follow rivals that have devised ways to avoid the EU bonus cap and maintain their bankers’ multimillion-pound pay cheques.
The 81%-taxpayer-owned bank is keen to keep pace with […]

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By |January 16th, 2014|All Banks, Barclays, HSBC, RBS|0 Comments
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    RBS Relies on Forged Signatures to access Experian credit file

RBS Relies on Forged Signatures to access Experian credit file

A legal dispute resulted in the bank using a private eye to access a customer’s credit rating file – and he wants to know why

If you were embroiled in a dispute with your bank, how would you feel if you discovered that, unbeknown to you, private detectives had accessed your credit report to get the lowdown on your finances?

Perhaps you would be shocked and consider it a breach of your privacy, as there are tight controls on who can […]

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The FSA, RBS & the ‘pack of lies’

On page 277 of The Devil’s Derivatives, there is a short account of how the U.K. Financial Services Authority supervised the Royal Bank of Scotland in the spring of 2008. It’s only a small part of the book, but it caused me a disproportionate amount of trouble, including a legal threat from the FSA that caused me to change my U.K. publisher and delayed publication of the book b
The passage in my book focuses on an FSA employee called […]

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By |January 15th, 2014|All Banks, RBS|0 Comments
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    Former Top Execs to give evidence against RBS in High Court trial

Former Top Execs to give evidence against RBS in High Court trial

Exclusive by Ian Fraser

The investor group suing Royal Bank of Scotland in the High Court in London has recruited five former executives to act as witnesses in its £4.3 billion group litigation order against the state-rescued institution, the Sunday Herald can reveal.

The shareholder action group claims RBS misled investors over a rights issue

The former insiders who have agreed to appear for the RBoS Shareholders’ Action Group include one banker who was an RBS director for more than a decade. […]

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    One thing’s certain in 2014: bankers will get bigger payouts

One thing’s certain in 2014: bankers will get bigger payouts

 Regulators are trying to cap financial pay packets, but banks have already found ways  around the new rules.
 Prepare for “an out-of-body experience”. We have Sir Philip Hampton, the chairman of  Royal Bank of Scotland, to thank for describing that memorable reaction to negotiating a  £4m bonus with an employee of the bailed-out bank and the recipient’s fury at the level of the payout, which he considered derisory. A rival of the unnamed banker was getting £6m. “This is absolutely […]

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By |January 5th, 2014|All Banks, HSBC, RBS|0 Comments
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    Published version of RBS report was edited, business department admits

Published version of RBS report was edited, business department admits

Vince Cable’s department says full version of document alleging bank forced small business to close was not sent to watchdogs!  Lawrence Tomlinson is Vince Cable’s entrepreneur-in-residence at the business  department.

Vince Cable’s business department has now admitted that the scathing report into Royal Bank of Scotland’s treatment of small business  customers published last month was different to the one the business secretary had received.

The report, which alleges the bailed-out bank had deliberately forced small firms to go bust to enable RBS […]

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By |January 5th, 2014|All Banks, RBS|0 Comments
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    RBS in turmoil as finance director Nathan Bostock quits for Santander

RBS in turmoil as finance director Nathan Bostock quits for Santander

 City hopes of an early a sell-off of the taxpayer’s stake in Royal Bank of Scotland were  dealt a massive blow today as its finance director, Nathan Bostock, was poached by  rival Santander UK.

 That is a clear signal that Santander UK is planning its own London stock market  flotation which could come as early as 2015. Chancellor George Osborne had hoped to  start selling RBS shares later that year.
Bostock, who had been in the job at RBS for just […]

By |January 4th, 2014|RBS, Santander|0 Comments

RBS faces quiz over collapsed fashion chain Peacocks

 Former directors and investors in collapsed fashion chain Peacocks are considering a complaint  about Royal Bank of Scotland to the Serious Fraud Office, according to reports.

 When Peacocks went into administration in early 2012, RBS played a key role as the retailer’s leading  lender in deciding to pull the plug.

Other lenders believed the chain could survive.
The SFO is already examining claims RBS deliberately drove small firms under for its own benefit, following a report by Lawrence Tomlinson, entrepreneur in residence […]

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By |January 4th, 2014|RBS|0 Comments

RBS Referred To City Watchdog Over SMEs

Business Secretary Vince Cable has referred the state-backed Royal Bank of Scotland (RBS) to the City regulator amid renewed allegations over its treatment of struggling business customers.

Sky News understands that Mr Cable has passed to the Financial Conduct Authority (FCA) a dossier of evidence compiled by Lawrence Tomlinson, a businessman who also advises the Department for Business, Innovation and Skills (BIS).

Among a string of claims made by Mr Tomlinson, according to people familiar with the dossier, is that RBS […]

By |January 3rd, 2014|All Banks, RBS|0 Comments