PUT GREEDY BANK CHIEFS IN THE DOCK
As Scots police hand RBS fraud investigation report to prosecutors, campaigners demand:
POLICE investigating allegations of fraud at Royal Bank of Scotland have handed a dossier to prosecutors who are considering criminal charges.
detectives have spent a year looking into claims that the bank’s global restructuring group (grg) deliberately ‘killed off’ healthy businesses.
Victims say thousands of ventures were destroyed and had their assets stripped as part of a plan by ailing RBS to make it more viable after a £45billion government bailout.
Campaigners want scotland to follow iceland, where 36 bankers have been jailed for a total of 96 years.
They have urged the Crown office to make sure ‘greedy’ RBS bosses are put in the dock to answer for the scandal.
Prosecutors are now analysing the weighty police report to determine whether individuals acted illegally.
The scottish daily Mail understands that officers involved in the inquiry have been left shocked at the extent of the allegations against grg.
if the Crown office decides there is sufficient material, arrests of RBS officials may quickly follow.
it is believed police continue to deal with further complaints about the bank from business owners who were forced into liquidation, and more evidence is
continually being fed to the probe. Nigel Henderson, head of the Scottish branch of the SME Alliance pressure group, which is campaigning for legal action against RBS officials, said: ‘This is a positive development. A decision by the Crown Office should come sooner rather than later – the victims of RBS shouldn’t be kept in limbo any longer.
‘Iceland is a small country but has jailed bankers for fraud. It should not be beyond Scotland and the UK to ensure that justice is served.
‘It’s not enough for the banks to pay huge fines while the greedy criminals behind the fraud get off scot-free.’
Farmer Kenny Riddoch, who was evicted after RBS collapsed his healthy businesses in 013, said: ‘We need the Crown Office to run with this case now and start putting GRG guys in the dock.’
Mr Riddoch, formerly of Huntly, Aberdeenshire, but now living in Southampton, added: ‘If RBS wasn’t Governmentowned there would have been a public inquiry and compensation. They’re trying to get their money back.’
The Government took a controlling interest in RBS in October 008, as part of the £45billion bailout plan.
It was ordered to dispense with bad debts and build up its reserves so the taxpayer could protect its stake, which is currently 73 per cent of the shares. Customers’ assets were revalued downwards then loans recalled because of the smaller collateral.
Around 16,000 businesses were pushed into the bank’s GRG, a division to help turn around distressed firms.
Many were forced to sell assets or equity to RBS at knock-down prices, while some collapsed into bankruptcy despite never missing a repayment.
‘Iceland has jailed bankers for fraud’
The bank’s executives have always denied there was a deliberate attempt to fleece customers – but have set aside £400million to cover anticipated compensation payments.
Leaked documents have shown staff were encouraged to squeeze money from businesses, while GRG racked up profits of £1. billion in 011 alone.
Two reports – by law firm Clifford Chance and ex-Bank of England deputy governor Sir Andrew Large – found no proof RBS had deliberately forced firms into default. But a third, by former government adviser Lawrence Tomlinson in 014, said the bank ‘killed off’ small businesses.
It sparked a probe by the Financial Conduct Authority, which found there had been ‘widespread inappropriate treatment’ of customers.
The Scottish Daily Mail revealed in October 016 that the Crown Office and Procurator Fiscal Service (COPFS) had instructed police to gather evidence.
Now, after an inquiry lasting more than a year, files are with lawyers. Detective Chief Inspector Jim Robertson said: ‘An assessment of the inquiries has been reported to COPFS.’
COPFS said its study of the evidence continues.