MPs attack RBS over its ‘disgraceful’ business unit

MPS have branded the Royal Bank of Scotland’s mistreatment of small businesses ‘disgraceful’ after wielding parliamentary privilege to publish a report on a controversial unit at the bank.

The Treasury Select Committee (TSC) said there was ‘overwhelming public interest’ in placing the Global Restructuring Group (GRG) report in the public domain after it was widely leaked.

Andrew Bailey, head of the Financial Conduct Authority (FCA), was ordered by the Committee to publish the document on GRG, the banking giant’s much-criticised restructuring arm, but he said this ‘proved impossible’ for legal reasons.

RBS has been dogged by allegations that GRG intentionally pushed small businesses towards failure in the hope of picking up their assets on the cheap.

In a statement, Committee chairman Nicky Morgan said: ‘The findings in the report are disgraceful. 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.’

The report by Promontory Financial Group found that there was ‘widespread inappropriate treatment of customers’ inside the GRG unit.

The release follows the publication of previously undisclosed memos last month showing GRG staff being encouraged to apply pressure and extract money from customers. And RBS spokesman said the report made for ‘very difficult reading’ and it was ‘deeply sorry’ over the way customers were treated.

The bank moved to head off criticism by launching a complaints process spearheaded by retired High Court judge Sir William Blackburne and offering to refund complex fees.

Shares in RBS were 0.4 per cent lower in afternoon trading on the London Stock Exchange.