RBS small business accusations

Vince Cable has referred to the Financial Conduct Authority (FCA), substantial information that accuses an area of the RBS that handles companies in financial difficulties, of some pretty heartless activity.

This department is the Global Restructuring Group (GRG) and the accusations the bank now faces, is that the companies were pushed prematurely into the GRG group by other areas of the bank, because of their higher fee structure, not that the clients of the bank were necessarily in a life threatening situation but may just be in danger of breaking loan agreements.

The bank is also accused of using accountancy firms that may favour the bank, if it was in the bank's interest to have that client placed into administration, that could allow the bank to purchase any property involved through another area of the group.

The accusations are part of the " Tomlinson report, by Lawrence Tomlinson, a Government advisor, that will be published on Monday November 25th