Thursday 31 January 2019

Government agency stopped RBS cleaning up after scandal

The Royal Bank of Scotland's Global Restructuring Group (and a similar shady unit at Lloyds) sent many small businesses to the wall in the first two decades of this century. (For some background and a case study, read this by journalist Ian Fraser.) It should be noted that the depredations of the GRG began during the New Labour governments of Tony Blair and Gordon Brown and continued three years in to the Coalition government. One wonders how much chancellors Brown, Darling and Osborne knew or cared.

Now comes a report by the BBC which should surely have attracted more attention than a single mention in the Times. As I understand it, RBS having discovered the disastrous effects of the GRG sought to support customers who had suffered, where it could, but a Treasury agency, the Asset Protection Agency, effectively prevented the bank from doing so. Perhaps the APA was mindful of the Treasury's desire to bring down the levels of UK debt at all costs, but businesses which could have returned to viability were the sufferers.

Perhaps there will be a deeper and more informed examination on one of the BBC's financial broadcasts, like Money Box coming up this Saturday on Radio 4. Judging by previous experience, I would expect the FCA's report referred to at the end of the report to be tardy and superficial.

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