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RBS GRG Unit Paid £17 million in bonuses despite FCA investigationTaxpayer backed Royal Bank of Scotland have awarded bankers in their restructuring division bonuses of £17 million - despite an ongoing FCA investigation into claims that they pushed small businesses ‘to the brink’.

The Global Restructuring Group (GRG) at RBS have been accused by a Government advisor of forcing small businesses to the brink of insolvency in order for the bank to buy up their properties to generate a profit.

Furthermore, a report by Sir Andrew Large, former Deputy Governor of the Bank of England said that the GRG’s ‘internal profit centre’ meant that the department may focus on driving profit away from clients, as opposed to assisting in the functioning of their business.

Business Secretary Vince Cable asked bosses at RBS to consider bonuses carefully in light of the FCA investigation and the Treasury Select Committee’s scrutiny, according to the Sunday Times. When asked about the bonuses awarded to GRG staff, RBS declined to comment.

In addition, bosses at RBS have been called “wilfully obtuse” for giving misleading evidence to a committee of MP’s in a meeting to discuss the allegations about the treatment of small firms. Andrew Tyrie, chairman of the Treasury Select Committee stated that he would be writing to to the bank’s chairman to complain about the evidence given by deputy chief executive of RBS,Chris Sullivan and and head of the bank’s GRG unit Derek Sach.

In June, RBS bosses insisted that GRG was not a “profit centre”. Mr Tyrie said that RBS; : “decided to contest the term in evidence to the Committee, not only in a written statement in February, but also repeatedly in its public hearing in June,”

However, in a letter to Mr Tyrie, Mr Sullivan, said he wished to “correct the statement he made to the Committee” - agreeing that GRG was in fact a profit centre, contrary to previous insistence by RBS.

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This blog post is intended as a news item only - no connection between Lewis Nedas and the parties concerned is intended or implied.


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