The controversial GRG division at Royal Bank of Scotland has begun to be dismantled, with two senior executives leaving after scrutiny of unit’s dealings with small companies.
Derek Sach who is the head of the global restructuring group (GRG) and Aubrey Adams another executive who runs the property unit within GRG will leave the bank in March 2015.
Laura Barlow, who is currently the head of the restructuring team within GRG for the UK and the US has now been appointed as the head of the RBS restructuring division - her appointment is to take immediate effect.
GRG who deal with companies facing collapse have faced criticism over a report produced by advisor to business secretary Vince Cable that the unit forced viable business entities ‘to the brink’ in order for the bank to buy their properties and make a sizeable profit.
The Financial Conduct Authority is also investigating the claims. The decision to close GRG as a stand alone unit also comes at a time of economic recovery in the UK which means far fewer restructuring cases. RBS chief executive, Ross McEwan, said only a few weeks ago that the number of cases referred to GRG had dropped by 40%.
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