The Daily Telegraph reports that the former Bank of England official charged with identifying problems in small business lending at Royal Bank of Scotland says the lender needs to rethink the way its controversial turnaround group operates.
He said the taxpayer-backed lender’s profit-making model in its restructuring business was 'flawed' and that allegations it intentionally put companies out of business for the bank’s gain were 'plausible'.
Speaking to the Treasury Select Committee, Sir Andrew told MPs his own report on RBS’s SME lending business had found no evidence to substantiate the allegations, but warned that the way the bank’s global restructuring group was set up laid it open to such claims.
'The decision that an organisation is beyond reprieve will be made by GRG, which is an internal profit centre in the bank. I think that is flawed', said Sir Andrew.
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image: © Mark Ramsey