Documents suggest RBS pushed SMEs into financial distress for profit
10-Oct-2016RBS are back in the news again, after documents were released by a whistleblower showing RBS to secretly profit from struggling businesses. This supports the views in the Tomlinson report back in 2013. RSB has been in the news since then regarding the matter. Last year a group of SMEs tried to sue the bank for its treatment of small businesses.
According to the documents, the bank put more pressure on struggling businesses after the 2008 financial crisis and ensured even the slightest problem would cause companies to be put into the controversial Global Restructuring Group (GRG). "Project Dash for Cash" was shared with employees, urging them to search for companies in need of 'restructuring' so they could increase interest rates and 'provoke a default' .
Tomlinson said in a statement, “These documents are massively significant in that they finally, for me, prove what was in my report.”
“I think RBS should just come clean and say yes, GRG was a profit centre and it did act against the best interest of the UK as a whole.”
The documents and latest reports on the matter will be discussed tonight on Newsnight, BBC2 at 10.30pm.