RBS accused of rebranding sham by MPs

Rogue unit bosses head new team

ALMOST all the senior managers in a new RBS unit for small businesses previously worked at a division of the bank who were slated for their ruthless tactics.

RBS’s now defunct Global Restructuring Group (GRG) chased profits from debt-ridden firms they were meant to save.

Bosses at RBS apologised for the rogue unit, set up a new one and promised to overhaul the bank’s culture.

But it has now been revealed that 30 of the 32 senior managers in the new unit worked for GRG.

In total, three-quarters of the staff in the new unit were previously with GRG.

Nicky Morgan, who chairs the Commons Treasury Select Committee, said: “The discovery that almost all the senior management in the new unit previously worked at GRG raises concerns that there has merely been a rebranding exercise.”

Leaked documents revealed that GRG managers were told to let small business customers “hang themselves” when they were in financial difficulties.

A report written by experts for the Financial Conduct Authority revealed the disgraceful tactics at GRG, who operated from 2005 until 2013.

When the report was published last week, Morgan said: “The overarching priority at all levels of GRG was not the health and strength of customers but the generation of income for RBS, through made-up fees, high interest rates and the acquisition of equity and property.”

Yesterday, Morgan demanded to know what RBS have done to ensure the “toxic culture” within GRG has been stamped out.

The committee also raised concerns over the “surprisingly low” compensation paid out to small businesses affected by GRG.

An RBS spokesman said: “The culture, structure and way RBS operate have all changed fundamentally and we have made significant changes to deal with the issues of the past, including how we treat customers in financial distress.”

On payouts, he added: “The bank have made offers of £115million relating to direct losses. The complaints process is at an early stage.”