RBS boss admits restructuring “error”

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RBS boss Ross McEwan has admitted a statement he made claiming that the World bank, the Restructuring of the Group helped most of its customers for business has been bad.

He has made the admission of the Deputies of the Treasury Select Committee on Tuesday.

They have been the evidence on the leakage of body report that found a “deliberate, co-ordinated strategy” to put RBS’s interests before those of their clients.

Mr. McEwan said RBS “successfully returns the vast majority of the companies he works with”.

He added: “The bank, through its restructuring team, helped minimise those losses where it could, successfully turning round thousands of businesses, safeguarding hundreds of thousands of jobs.”

However, the Treasury committee chair Nicky Morgan forced to the admission of Mr. McEwan that his statement was false, in the light of an official report leaked to the BBC.

“You have made a statement in 2014, GRG turning around the majority of the companies he works with and I ask you – that the statement is not true?” she asked.

“In 2014, absolutely when you look at the stats that have come through – that is not right,” Mr McEwan said.

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2014 declaration has received the results by lawyers Clifford Chance, appointed by RBS to conduct what it claimed was an “independent investigation” into allegations of mistreatment of business customers.

Mr McEwan said at the time: “Our first priority, and now is trying to help our customers recover.”

This assertion has been contradicted by the central finding of a survey commissioned by the Financial Conduct Authority (FCA), which has concluded in 2016 and has been revealed to the BBC last August.

The survey, conducted by consultants Promontory and Mazars, found that the bank had a dual objective: its own commercial interests on the one hand, and help clients to turn their fortunes around on the other. It was concluded that there were conflicts of interest between these objectives.

The report also found that only 10% of business customers placed in the Global Restructuring Group were returned to normal banking. It also found that 86% were subject to some form of inappropriate treatment – which, in the important points that should be considered as “systematic”.

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Following the hearing, the FCA has indicated that he was pleased to make the report into GRG in full after Mr. McEwan said that the bank would not object.

However, he said the publication would require the consent of those who provided the information as well as all the individuals identified.

“We’re going to address these people, once the research is complete, ask for their consent to publish,” the FCA said.’Considerable distress’

Tony Boorman, director-general of the Promontory of consultants, who is the author of the FCA report, told mps that the effect of their actions on small business customers, “was not uppermost in the minds” of GRG staff.

“We were very conscious in speaking to many clients in our sample, of the very great distress which has been caused by some of the events that we have attended,” he said.

Mr. McEwan repeated apologies for the first time in 2016 RBS “you don’t have any right”, but refused to accept that the staff had been “insensitive and aggressive”.

That drew an angry response from Alister Jack MP, who refers to his own experience as a business owner in conflict with the bankers of the GRG division in 2009.

“The manager who came to see me with his mate … this was not only aggressive, it was brutal. He shouted to his companion, because she couldn’t get him to do the numbers, stand-up, has reduced her tears, and he left my office and walked to the stairs, he was always shouting at her.

“Then do not tell anyone that you don’t for a minute think that your staff were not aggressive, please. It’s just insulting.”