RBS Asset Stripping Small Business

RBS Asset Stripping Small Business.

In a report commissioned by Government, Lawrence Tomlinson has issued his investigation report yesterday into business practices by state owned Royal Bank of Scotland.

The Tomlinson report alleges that a division of RBS, known as the Global Restructuring Group (GRG) has had business clients referred to it that owe money to RBS and then with higher charges and with downward revaluations of assets has then been able to place businesses in default, wind up and cease assets at up to “a third” of the real asset value of the business in distress.

Business secretary, Vince Cable MP, has passed the matter to the Financial Conduct Authority (FCA) for investigation.

Comment 

We have not seen the report, we have only seen Mr Tomlinson interviewed on television so cannot comment specifically.

That said, if the allegations are true then the FCA will get to the facts and if RBS has been systematically asset stripping to bolster its own balance sheet at the detriment of businesses and their employees then no doubt compensation bills and fines with start to fly.