ADMIN: We can olny thank Lawrence Tomlinson for his bravery on taking on RBS - The fire storm that followed his report to discredit him was totally unaccepable.
For ABL we have a dog's dinner of a code of conduct and an ombudsman service which factoring companies can make up to £0.5M by putting their client into insolvency because they can. Like RBS GRG walk away with substantive assets at the tax payers expense in most cases.
The continued abuse within the factoring industry of their clients can no longer be tolarated.
RBS Disbands Restructuring Group Amid Probe
GRG Head Derek Sach Set to Leave Bank
Updated Aug. 8, 2014 8:05 a.m. ET
RBS is disbanding its Global Restructuring Group.
Bloomberg News
LONDON—
Royal Bank of Scotland Group
RBS.LN +2.43%
PLC is disbanding its controversial Global Restructuring Group, according to people familiar with the matter.
The
move comes as the 80% U.K. government-owned bank continues to fend off
allegations that the GRG turnaround unit sought to profit by putting
struggling companies out of business. As part of the rejig
Derek Sach,
the head of the division, will leave the bank, as will
Aubrey Adams,
who heads up the property function within GRG, these people say.
Laura Barlow
has been appointed to head up RBS's restructuring activities. Her
team will work alongside RBS's existing businesses to help clients who
are struggling with repayments. Some of the asset that are currently
being restructured are being moved to RBS's "bad bank," these people
say.
The GRG unit operated as a stand
alone business, employing several hundred people across the world, to
help restructure customers' debts. Following the financial crisis the
number of customers being referred to RBS's GRG unit rose dramatically.
In November last year
Lawrence Tomlinson,
an adviser to the U.K. government's department for Business
Innovations and Skills, said in a report that RBS's GRG unit regularly
forced business customers to default on loans so that the bank could
charge higher fees or seize their properties and sell them. The report
sparked a political row over the government-controlled bank's treatment
of small businesses.
A report
commissioned by the bank on its business lending found that fewer than
10% of businesses referred to the GRG unit end up in bankruptcy. But its
author, former Bank of England Deputy Governor
Andrew Large,
said there is a potential conflict of interest at GRG because it
selects the struggling businesses it works with from RBS's larger base
of customers, and aims to generate a profit.
http://online.wsj.com/articles/rbs-to-disband-global-restructuring-group-1407494107
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