Treasury committee releases details of ‘widespread inappropriate treatment’ that City watchdog refused to make public:
The Treasury committee has published the full unredacted report into Royal Bank of Scotland’s “disgraceful” treatment of struggling small businesses that came to it for financial assistance in the wake of the banking crisis.
The influential group of MPs, chaired by Nicky Morgan, released the complete report after a protracted stand-off with City watchdog the Financial Conduct Authority (FCA), which had published only a redacted version.
Commissioned by the FCA in 2014 after allegations by former RBS clients, the 350-page document details “widespread inappropriate treatment” of small businesses by the bank’s Global Restructuring Group, resulting in “material financial distress”.
Speaking as she announced the terms of an inquiry into the financing of small businesses, Nicky Morgan said: “The findings in the report are disgraceful.”
Federation of Small Businesses chairman Mike Cherry said the GRG scandal had made firms wary of applying for bank loans and called on the Treasury committee to reassure them “that another GRG can’t happen again.”
Laith Khalaf, senior analyst at City investment firm Hargreaves Lansdown said: “This report shines a light on the gruesome culture within GRG in its dealing with RBS business customers. It paints a very sorry picture of the excesses of the banking industry during the financial crisis and in its aftermath.”
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