trending Market Intelligence /marketintelligence/en/news-insights/trending/Vn7J-4GMlTyZ466ZFPqc4w2 content esgSubNav
In This List

Report: RBS benefited from struggling businesses, data leak shows

Blog

Latin American and Caribbean Market Considerations Blog Series: Focus on LGD

BLOG

Banking Essentials Newsletter: June Edition

Case Study

กรณีศึกษา A Bank Takes its Project Finance Assessments to a New Level

Blog

Financial Institutions Factor Transition Risk into Climate-Related Stress Testing


Report: RBS benefited from struggling businesses, data leak shows

Documents leaked by a whistleblower show that deliberately put businesses into default to boost its own profits by picking uptheir assets on the cheap or charging higher interest and fees, BBC Newsreported Oct. 10.

The documents confirm that the bank's employees were paidhigher bonuses based on fees collected for restructuring customers' debts.Also, staff members were reportedly encouraged to be able to justify businesses to the GlobalRestructuring Group, in what the lender called a "dash for cash."

Once companies were moved to the turnaround division, RBSsqueezed cash from them by taking an equity stake or by pushing them intoadministration, according to the report.

RBS told BBC Newsnight that it had let some small businesscustomers down in the past but did not deliberately make them .

The U.K. Financial Conduct Authority recently the final reportexamining RBS' treatment of business customers in financial distress. The FCAwishes to complete a number of steps before sharing the final findings.