Banks can’t do as they please
RBS chiefs escape action over ‘disgraceful’ behaviour towards struggling small firms
BANKS nearly brought the country to its knees – and the public bailed them out.
How did they thank us? In RBS’s case, they set about turning the screws on small businesses.
Then, just for good measure, they drew up a list of high-street banks to shut.
No doubt it’ll be raised glasses all around the board room at the latest news managers of their global restructuring arm won’t face action from the Financial Conduct Authority.
This toothless tiger decided it would be pointless, even though mistreatment of customers has been accepted.
No one really wins here, apart from the bankers. Still, this may be a pyrrhic victory.
RBS have only got themselves to blame for the countless PR disasters they’ve brought down on this onceproud institution.
The current bosses insist what went on at the Global Restructuring Group in no way reflects banking practice.
But what are customers supposed to think when the bank seem so content to treat them badly?
The only reason this mess isn’t being cleared up by the City’s watchdog is because it’s not properly regulated.
That has to change – because it’s clear the banks won’t.
RUTHLESS RBS managers have escaped disciplinary action for their treatment of struggling small firms they were meant to save.
City watchdog the Financial Conduct Authority yesterday admitted they don’t have the power to act against senior bosses in the bank’s controversial global restructuring group.
The unit had already been condemned by MPs for “disgraceful” behaviour, including accusations that they pushed firms towards failure.
Last night, Scots politicians said the regulatory body are “toothless” and needs to change.
The SNP’s Stewart Hosie said: “This sorry saga demonstrates the real need for a new financial dispute resolution regime which can command the trust of the public.”
Scottish Labour’s economy spokeswoman Jackie Baillie said: “It is deeply concerning to see that the Financial Conduct Authority seem so toothless in the face of what was clearly questionable behaviour by the Royal Bank of Scotland.
“The powers of the Financial Conduct Authority must urgently be reviewed in light of this case.”
A report into a former RBS business support unit the Global Restructuring Group by Promontory Financial Group earlier this year showed “widespread inappropriate treatment of customers”.
The Commons Treasury Select Committee said GRG had crippled companies with high interest and “made-up fees”.
Yesterday, FCA chief executive Andrew Bailey said he’d taken independent legal advice before deciding not to take action.
He said: “It is important to recognise that the business of GRG was largely unregulated and the FCA’s powers to take action, even where the mistreatment of customers has been identified and accepted, are very limited.”
RBS chairman Sir Howard Davies said: “We will reflect carefully on the FCA’s findings to learn any further lessons from what was a hugely challenging time for the bank, their customers and the economy.”