RBS Sorry For ‘Incorrect’ Evidence To MPs

Royal Bank of Scotland (RBS) has apologised for telling MPs that a controversial division of the bank, accused of deliberately closing viable firms, was not seeking to make money from its activities.
The development came to light when the Treasury Select Committee released a series of letters between its chairman Andrew Tyrie and bank chairman Sir Philip Hampton relating to a hearing in June.
The Committee was told then by senior bank directors it was not the case that the Global […]

RBS Group Executives’ testimony questioned

Bonuses handed out to senior bosses at Royal Bank of Scotland are facing renewed scrutiny after the chairman of the bailed-out bank apologised for inaccuracies in evidence given to MPs about its restructuring division.
Sir Philip Hampton admitted evidence given by two of the most senior bankers to the Treasury select committee was incorrect. The division is facing accusations about its treatment of small businesses.
The inaccurate evidence was given in June by Derek Sach, who ran the global restructuring group […]

Cable’s Guru scorns RBS ‘mockery’ of small firms

The former government adviser who claimed in a controversial report that Royal Bank of Scotland forced viable businesses to the wall has launched a fresh broadside at the bank after it was forced to issue an apology to the Treasury Select Committee over misleading evidence given by two executives.
Lawrence Tomlinson said the testimony of Derek Sach, the former head of the RBS global restructuring group, and deputy chief executive Chris Sullivan “makes a mockery of both the parliamentary process […]

FOS- SME Bank Loan Disputes Jump By A Third

The number of small businesses asking the Financial Ombudsman Service to intervene in disputes over bank loan and overdraft facilities has jumped by a third in the last year, according to LDF, a leading finance provider.
Figures show that the number of complaints received by the FOS from small businesses about loans and overdrafts from banks increased from 612 in 2012 to 816 in 2013.*
LDF points out that the actual number of disputes between businesses and banks over their loan […]

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    Lawrence Tomlinson – Lloyds & RBS Should Boost Lending Or Be Broken Up

Lawrence Tomlinson – Lloyds & RBS Should Boost Lending Or Be Broken Up

The government should use its stake in Lloyds Banking Group and the Royal Bank of Scotland to force them to lend more to firms, coalition adviser and multimillionaire businessman Lawrence Tomlinson has urged.
Speaking to the Huffington Post UK, care home mogul Tomlinson, who was drafted into the Department for Business as an “entrepreneur-in-residence”, said the two banks were “numb” to identifying what makes a business worth supporting.
“I think the two banks are too large to understand the difference between good and bad businesses, […]

George Osborne to reveal shake-up of SME loans

http://www.ft.com/cms/s/0/14a1ec8c-1cc4-11e4-88c3-00144feabdc0.html#ixzz39uXmlGpI

By Sam Fleming
Banks that reject loan applications from small and medium-sized companies will be forced to refer them online to other sources of funding.  George Osborne, the chancellor, will on Wednesday confirm plans to legislate to improve SME access to finance as part of a series of measures that aim to encourage choice and competition in financial services.

The move comes as Britain struggles to boost competition in the banking sector: the four biggest banks control 85 per cent business […]

Banking sector slow to increase competition after new rules

A relaxation in the rules governing the creation of new banks is yet to lead to a dramatic increase in the number of new high street players being authorised by the City regulator.
Figures published by the Bank of England show little change in the annual approval rate for new banks since the introduction of rules last year, which mean that new banks need less capital to get started than they did in the past.
Five banks were authorised in the […]

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    Government to slash SME red tape – and this time they mean it

Government to slash SME red tape – and this time they mean it

On learning of another government initiative to ‘slash red tape’ for small and medium-sized enterprises (SMEs), it’s hard not to be a little sceptical.
After all, this worthy objective has been doing the rounds for several decades, along with ‘putting bobbies back on the beat’ and ‘cutting waste in Whitehall’.
But the Small Business, Enterprise and Employment Bill – heralded in the Queen’s Speech on 4 June – really could make a significant difference to Britain’s entrepreneurs.
For the first time, ministers […]

By |June 18th, 2014|All Banks, SME|0 Comments

Gates remain open for scandals

THE UK faces the risk of further banking scandals, unless action is taken to increase competition in the lending market for small and medium-sized businesses, according to a Government adviser.
Lawrence Tomlinson, the Yorkshire entrepreneur and Government adviser who compiled a dossier of complaints against RBS’s turnaround division, made the comments in response to reports that the Government is going to urge the big banks to increase the supply of SME (small-and-medium-sized business) loans.
The report in the Sunday Telegraph said […]

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Metro Bank launches new SME Finance service

Recently-launched high street bank Metro Bank today announced the launch of Metro Bank SME Finance, a new invoice and asset financing platform for small businesses.
Created following the bank’s acquisition of SME Invoice Finance and Asset Finance in August 2013, the Metro Bank SME Finance brand will offer a range of lending services to small firms, allowing them to borrow against unpaid invoices and assets.
Founded in 2010, Metro Bank is the UK’s first high street bank to be granted a licence by […]

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Sir Richard Lambert launches UK banking standards council

By Sharlene Goff, FT Retail Banking Correspondent
A new organisation charged with raising standards in the banking industry will rely on public naming and shaming of lenders that fall short as it attempts to clean up the sector after a series of misconduct scandals.
The UK’s seven largest lenders have agreed to report each year to the new Banking Standards Review Council.  The body will set standards for “culture, competence and customer outcomes” and publish an annual report detailing where banks […]

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    SMEs still reluctant to switch banks despite continued finance concerns

SMEs still reluctant to switch banks despite continued finance concerns

16% feel that difficulties in obtaining access to finance from their bank is an ongoing worry, research shows.
Despite the ongoing concerns over access to finance, charges and calling in loans, small business owners remain reluctant to switch banks according to the latest research from national business group the Forum of Private Business.
The Forum’s banking and finance survey indicates that just over half of small businesses surveyed were content with their current banking arrangements and thought they offered good or […]

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    Budget Report: ‘Access to finance remains a problem for SMEs’

Budget Report: ‘Access to finance remains a problem for SMEs’

In its report into the 2014 Budget, the Treasury Committee has reiterated the difficulties SMEs face when seeking finance – something which is preventing some businesses from reaching their full potential and hindering the economy.
Robert Wood, Chief UK Economist at Berenberg Bank and witness for the Committee, said: “very poor availability of finance over the past few years has almost certainly prevented some rapidly growing firms from expanding.”

It’s a view shared by fellow witness, the Confederation of British Industry […]

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65% of SME’s rejected for a loan want to try alternatives

A government consultation ended last week into whether legislation should force banks to refer rejected loans to alternative sources of finance.
At present the largest four banks account for over 80% of UK SMEs’ main banking relationships. Many SMEs only approach the largest banks when seeking finance. Although a large number of these applications are rejected – in the case of first time SME borrowers the rejection rate is around 50% – a proportion of these are viable and are rejected simply because they don’t meet […]

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Vince Cable – Bankers’ Pay Still Extraordinarily Large

Vince Cable has issued a stark warning to Britain’s leading boardrooms that they need to crack down on bonuses to restore public trust and avert the threat of fresh legislation to limit executive pay.

The business secretary fired off a warning to the 100 biggest UK-listed companies about the damage big pay deals can have on their image, before Barclays’ annual meeting on Thursday, where protests about the bank’s £2.4bn bonus pot are expected to be registered by disgruntled shareholders.

Cable told […]

RBS Mulling Over Legal Action Against Lawrence Tomlinson

Jon Pain, the head of regulatory affairs at RBS, said the claims by the adviser to the Department for Business, Innovation and Skills had done serious damage to the bank’s reputation since his 20-page report was published in November and legal action could not be ruled out.

Royal Bank of Scotland is considering legal action against the millionaire businessman behind a damning report that accused the taxpayer-backed lender of deliberately putting customers out of business for profit.  The bank may […]

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New crowdfunding rules: implications for small businesses

SMEs are increasingly looking at crowdfunding as a way of raising finance without dealing with bureaucratic banks and fickle investors. However, new rules by the Financial Conduct Authority (FCA), which came into force recently, regulate certain types of crowdfunding.
Crowdfunding involves raising finance by taking small investments, loans or donations from a large number of people. Depending on who you believe, the new FCA rules have either “taken the crowd out of crowdfunding” or “represent the right balance between the freedom […]

RBS to wind-up GRG division West Register

Ian Fraser, whose book about RBS – entitled Shredded: Inside RBS the Bank that Broke Britain – will be published on June 6, said: “Clifford Chance was conflicted from the outset, and was therefore incapable of producing an objective report into this ongoing scandal.“It should never have agreed to do this report, and RBS should never have asked it. It is likely that its exoneration of RBS will be disproven in subsequent court actions.
“The report also suffers because of the narrowness […]

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By |April 20th, 2014|RBS, SME|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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    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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