UK retail banks questioned by MPs on fraud levels

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An influential committee of MPs has asked the UK’s five leading high street banks to report on how they assemble fraud figures, in response to a claim that they understate the numbers by as much as half.
The Treasury select committee was told banks only report fraud if the money lost is irretrievable, neglecting to include large amounts of stolen funds that are recovered.

Andrew Tyrie, chair of the committee, which oversees financial legislation, has asked Barclays, HSBC, Lloyds, Santander and Royal Bank of Scotland for information about […]

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 […]

Years On, Different Scandal, Same Problems

The numbers are once again staggering, the arrogance breathtaking. Yes, it’s another week, another banking scandal. Channel 4 News’ economics editor, Paul Mason, expressed what many felt when he went into something of a rage while reporting on the latest banking scandal from outside the offices of RBS. Mason later explained that the clip that was aired was filmed after he had had time to calm down, so exasperated was he that so little had changed in the last […]

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 […]

Banks still committing the same old crimes

Mark Garnier, the Conservative MP for Wyre Forest in Worcestershire, has condemned banks for committing “the same crimes” following the financial crisis, and called for greater empowerment and accountability for frontline staff.
Discussing the £14.5m fine imposed on Royal Bank of Scotland and Natwest for “serious failings” in their advised mortgage business by the FCA, Treasury select committee member Mr Garnier said: “They are obviously moving on with this, but it’s truly shocking that banks are still committing the same […]

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    Sach out – RBS begins to dismantle controversial restructuring division

Sach out – RBS begins to dismantle controversial restructuring division

Sach and Aubrey Adams, who runs the property unit within the global restructuring group (GRG), are leaving at the end of next March. Laura Barlow, who currently heads up the restructuring team for the UK and US within GRG, has been appointed as head of RBS’s restructuring division with immediate effect.
GRG, which deals with companies facing collapse, has faced a barrage of criticism, notably from Lawrence Tomlinson, an adviser to the business secretary, Vince Cable. He concluded in a […]

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    RBS Scraps Controversial GRG Unit Criticised in Tomlinson Report

RBS Scraps Controversial GRG Unit Criticised in Tomlinson Report

The Royal Bank of Scotland is scrapping the Global Restructuring Group (GRG), the controversial unit accused of engineering businesses into default while profiting from their struggles, says sources.
Sources told IBTimes UK that GRG “no longer exists” and was disbanded with immediate effect, while two of the group’s biggest bosses Derek Sach and Aubrey Adams will leave the bank.
However, another top GRG executive, Laura Barlow, will remain at the bank and take on a new role elsewhere.
RBS declined to comment.
Last […]

Tomlinson welcomes RBS Belated U-Turn to Treasury Committee

The former Government advisor who published a scathing report on the way RBS managed its relationships with some small businesses has welcomed the bank’s admission that its corporate turnaround division was used as “profit centre”.
Yorkshire entrepreneur Lawrence Tomlinson made headlines last year when he claimed that RBS had engineered businesses into default to move them into its Global Restructuring Group (GRG). Yesterday he said he was “pleased the truth has come to light”.
The GRG unit is meant to help […]

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RBS bankers in controversial GRG unit given £17m bonus

Taxpayer backed bank Royal Bank of Scotland has handed bonuses worth £17m to bankers in its restructuring division, despite an ongoing investigation by the City’s watchdog into its treatment of small businesses.

RBS’ global restructuring group (GRG) has been the focus of allegations by Lawrence Tomlinson, a Government adviser, that it forced viable small businesses to the brink so the bank could then buy up the properties and make a profit.

Another report by the former Deputy Governor of the Bank […]

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    Tomlinson: RBS Evidence to MPs ‘particularly surprising’

Tomlinson: RBS Evidence to MPs ‘particularly surprising’

The bank’s GRG unit has been an item of continued controversy for the bank. Derek Sach, head of the global restructuring group division, told MPs earlier this month that the unit was “absolutely not a profit centre” nor rough with its customers.
“Generally do believe we do good overall,” he told MPs on the Treasury select committee. Sach insisted that the bank “would never get any advantage from destroying a customer”, pointing out that GRG had lost £2.1 billion […]

RBS Accused Of Covering Up For ‘Corporate Psychopaths’

Protesters outside the RBS (Royal Bank of Scotland) annual general meeting in Gogarburn, Scotland, as The World Development Movement call on the bank to stop investing in coal mining. | Danny Lawson/PA Wire
Royal Bank of Scotland executives have been reportedly accused by shareholders of “covering up” for “corporate psychopaths” in their controversial business support unit.
The furious attack came at the state-owned bank’s annual general meeting (AGM) today, following a report by entrepreneur Lawrence Tomlinson, who accused the bank of […]

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    Royal Bank of Scotland chief receives shares worth almost £1.5m

Royal Bank of Scotland chief receives shares worth almost £1.5m

Ross McEwan, chief executive of Royal Bank of Scotland, received shares worth almost £1.5m in the bailed-out bank.
The New Zealander was handed the shares as part of a signing-on deal when he was first hired from Commonwealth Bank of Australia to run the retail operations of the 81% taxpayer-owned institution in September 2012. He was promoted to chief executive last October after Stephen Hester quit and sold just under half of the 432,000 shares which were released to him […]

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    Derek Sach Head of RBS GRG insists it was not aggressive to customers

Derek Sach Head of RBS GRG insists it was not aggressive to customers

Top executives from Royal Bank of Scotland on Tuesday defended the bailed-out bank from accusations that it deliberately forced customers into default to make a profit.
Derek Sach, head of the RBS global restructuring group which deals with companies facing collapse, insisted that the business he ran was not a profit centre, was not aggressive to its customers and had not threatened to remove overdrafts from small business customers.
Sach told MPs on the Treasury select committee: “Generally do believe […]

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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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