ADMIN: FOR RBS GRG READ THE WHOLE OF THE ASSET BASED FINANCE INDUSTRY - THE SAME INDUSTRY THAT SPENDS £M'S HIDING THE TRUTH THAT THE PROFIT IS IN CLOSING SOLVENT COMPANIES THROUGH HOSTILE INSOVENCIES - 705 OF ONE OFFICE THEIR TURN OVER WAS TERMINATION FEES
Royal Bank of Scotland has apologised for giving incorrect evidence to a parliamentary hearing, it has emerged.
Bank directors appeared before the Treasury Committee in June
to answer claims that RBS's Global Restructuring Group (GRG) had
deliberately killed off viable firms.
Newly released letters show that RBS chairman Sir Philip Hampton later said some of the evidence "lacked clarity".
Committee chairman Andrew Tyrie branded the evidence as "unacceptable".
GRG handled RBS's loans to companies considered to be a possible risk.
But there were allegations that some viable companies were deliberately forced to close by GRG.
A report by Lawrence Tomlinson, adviser to business secretary
Vince Cable, claimed that RBS was making money out of small and
medium-sized business that were in financial distress.
One issue of concern for the committee was whether GRG was
itself being run to make a profit. But senior directors Derek Sach and
Chris Sullivan gave evidence to the committee that suggested this was
not the case.
However, in his subsequent letter to Mr Tyrie, Sir Philip did
accept that GRG was a profit centre, adding: "This lack of clarity on
an important point is very disappointing to the committee as it is to
me, and I apologise."
But he said the two executives had made an "honest mistake" when addressing the committee.
'Manipulated'
In his response, Mr Tyrie also questioned the reliability of
other evidence, including the extent of GRG's powers, and statements
given about a West Midlands-based company used to publicise the
division's success.
This company, metals processor Independent Slitters, was said
to have been a GRG success story and the business was happy about its
relations with the RBS division.
But after the hearing, the firm wrote to Mr Tyrie, saying it was far from satisfied with the way GRG operated.
Chief executive Daniel Wharrad said Independent Slitters had
been "manipulated and played to enhance the public perception of GRG's
work".
In a statement accompanying the release of the letters, Mr
Tyrie said: "Parliament expects witnesses to give straightforward
evidence. Two senior managers at RBS fell short of this standard at a
hearing with the Treasury Committee in June.
"Anybody can make a simple mistake in their evidence. But
this was more than that - it was materially incorrect on a crucial point
and unacceptable
Continue reading: http://www.bbc.co.uk/news/business-30172326
