Santander investigates boss’s toxic past at RBS

Chairman’s crisis talks over bank chief’s future

SANTANDER has held crisis talks concerning the future of UK chief executive Nathan Bostock over his involvement with a toxic banking unit.

The chairman of Santander’s British operation, Baroness Vadera, has probed Bostock’s involvement in a scandal which allegedly saw small firms wrecked by bankers for a profit.

Vadera, 55, has held talks with the bank’s board, City regulators and its Spanish parent firm in Madrid about Bostock’s involvement with the notorious Global Restructuring Group (GRG) small business unit when he worked at Royal Bank of Scotland.

Bostock, 57, oversaw GRG as the bank’s head of risk from 2009 to 2013.

It was supposed to help struggling small businesses get back on their feet, but has instead been accused of loading them up with massive fees as management turned a blind eye. It is claimed this hastened the collapse of many firms.

The lender’s head office in Madrid and its executive chairman Ana Botin – a former chief executive of the UK division – have been kept fully informed.

Bostock is understood to have the full confidence of the chairman, the board and the head office in Spain, and there is no evidence he was personally responsible for any failings at RBS.

But pressure is mounting on him as a Financial Conduct Authority report into the failings of GRG – which was leaked last week – could be officially made public as soon as today.

Bostock jumped ship to Santander in 2014 and has since claimed to be a champion of small business. But there is growing outrage over what happened on his watch at RBS.

Vadera, 55, who was a small business minister in the last Labour government, will consider the FCA report, which is due to be made public by MPs on the Treasury Select Committee.

A copy seen by the Mail alleged that bosses were behind a harddriving culture which put the squeeze on customers.

Vadera was a key player in the response to the financial crisis and won plaudits for her efforts. But some last night said this reputation is at risk unless she takes action. Liberal Democrat leader and ex-Business Secretary Sir Vince Cable said: ‘Baroness Vadera is rightly regarded with respect in the City. But she cannot continue to preside over an arrangement whereby one of the main perpetrators of one of the worst scandals in the banking crisis remains in post.’

Santander declined to comment last night.