The Royal Bank of Scotland seems to be rather confused over whether its infamous Global Restructuring Group is run as a “profit centre”.

A job advertisement placed by the bank in January 2014, clearly states that the “role purpose” of relationship managers within GRG is to be “a major contributor to the Group’s bottom line” (i.e. its profits). After this job advert was cited by shareholder Gavin Palmer at the bank’s annual general meeting yesterday as evidence the bank had been caught lying about GRG’s true purpose, the bank took the job ad down. So here is a “screen grab” of it.
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Andrew Large, commissioned by RBS last year to review its lending to small businesses, said GRG was being used as an “internal profit centre”, a description that was retained by senior RBS insiders after they reviewed Large’s report. In a seminal report published last November, the former government advisor Lawrence Tomlinson highlighted how the bank routinely pushed viable business customers into the unit in order to hit them with massive fees and, ultimately, seize their assets.

It has been repeatedly reported that, when Derek Sach was drafted in to RBS from 3i by former chief executive Sir George Mathewson in 1992, his brief was to turn RBS’s restructuring and recovery arm into a “profit centre”. As I say on page 30 of Shredded: Inside RBS, The Bank That Broke Britain:-

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