Bloomberg reports that RBS said in an e-mailed statement today it appointed the law firm after a report by Lawrence Tomlinson, chairman and founder of LNT Group, said that once companies were in default, the bank could charge them advisory fees and buy their assets at reduced prices. Business Secretary Vince Cable has referred RBS to the Financial Conduct Authority.
'There are many devastating stories of how RBS has wrecked good businesses and the ruinous impact this has on the lives of the business owners', Tomlinson said in an e-mailed statement.
Cable has previously signalled concerns about small and medium-sized companies’ access to finance and in 2010 called bankers 'spivs and gamblers'. Tomlinson, entrepreneur in residence at Cable’s department, compiled allegations about companies’ difficulties with their banks during the recession and turned them into a report for Cable. Chancellor of the Exchequer George Osborne today called the results 'shocking'.
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image: © Elliot Brown