Law firm to probe RBS claims – ITV News

[Legal Beagles]

Law firm to probe RBS claims RBS has hired a law firm to investigate claims of “unscrupulous” treatment of small businesses – described as “shocking” by George Osborne. A new report alleges that the lender drove firms to collapse to buy back their assets at rock-bottom prices. via Law firm to probe RBS claims – […]

More...

[Amethyst]

Re: Law firm to probe RBS claims – ITV News

Ross McEwan has written to Sir Andrew Large to thank him for his Review and committing again to accepting all his recommendations.

The text from his letter follows:



Dear Sir Andrew,

I want to take this opportunity to thank you for your review into small and medium sized business lending at the Royal Bank of Scotland.

It is a tough read for the bank, but we asked you to conduct this review to challenge us and identify the steps we need to take to support more SMEs, and to make sure we are doing everything possible to support the UK economy. Your report provides a thorough and balanced analysis of the business.

Your report recognises the measures that have been taken already to sharpen our focus on the customer - but it also sets out the many areas where we fall short of what our customers deserve.

It is clear from your report that we have over corrected for the reckless lending practices that broke this bank five years ago. We can never return to those days again and your report recognises the steps we have taken to re-balance and stabilise the bank. But in many cases the pendulum of risk aversion has swung too hard to one side. As you have identified there are loans that we could, and should be making, but are not. You have shown that in many cases we are too complicated and too slow to react to the needs of our customers.

We recognise that the bar is set higher for RBS than any other bank, because we were rescued at the public expense. We have an obligation to do more than any other to support the British recovery.

That is why we accept the recommendations you have set out. We will do this as part of the full review into our ongoing businesses that I have launched. The review will ensure that the bank places the needs of our customers at its centre. Reporting back in February, the review will fully and transparently address the issues that you have raised in your report and I am pleased that Oliver Wyman will continue to work with the bank to help deliver on this.

We have already committed to fix our lending processes and we are beginning work to enable all but the most complex lending decisions to be taken in just five days of receipt of all necessary information – this process can currently take weeks and months in some instances.

We also recognise that there are steps we can take now to grow gross lending. This includes writing to thousands more businesses setting out how much more the bank is willing to lend them. We have already offered £4bn this way - this will now increase to £10 bn.

Your report also highlights that when times are tough for our customers, some have said they were angry about the treatment they received. As you say in your report, many are happy with the skills and expertise we provide at times of financial distress, but to ensure our customers can have full confidence in our commitment to them I have asked the law firm, Clifford Chance, to conduct an inquiry into this matter, reporting back to me in the new year. It is important that we get this right, especially as our regulators want the bank to remove problem loans more quickly.

We are the biggest SME lender - now we want to be the best SME bank too. That includes as measured by a new survey on customer satisfaction that we are funding and working with the SME trade bodies on.

Your report provides a road map for making RBS a better business bank. I am grateful to you and your team.

Yours sincerely,
Ross McEwan
Group Chief Executive

The final Lending Review Report holds the full details.

[Amethyst]

Re: Law firm to probe RBS claims – ITV News

Letter sent to Banks


'' Treatment of small and medium enterprise (SME) customers
You will have seen, and no doubt read, the reports published this week by Sir Andrew Large
and separately by Dr Lawrence Tomlinson.
You are aware that commercial lending is not a regulated activity under the Financial Services
and Markets Act 2000 (Regulated Activities) Order 2001. Nevertheless, the allegations in these
reports gave the FCA concerns as to whether firms are treating their customers appropriately,
in particular those in financial difficulties. This may indicate wider concerns in relation to
governance and culture within firms. We expect firms to act with integrity across all of their
activities.
If you have not yet read the reports I would encourage you to do so, and satisfy yourself that
your group does not engage in any of the poor practices alleged in the reports. I expect any
poor practices identified to be addressed. We will discuss your findings with you, and the basis
for them, in one of our regular meetings with you.
We will be disclosing publicly that we have asked banks to take these steps. Also, we will be
sending a copy of this letter to the Department of Business, Innovation and Skills and HM
Treasury for information.
Yours sincerely ''

[bluebottle]

Re: Law firm to probe RBS claims – ITV News

The practices RBS have been publicly castigated over have been going on for years. And RBS isn't the only bank involved. Most of the large banks were at it when I was in the police force. I don't buy the current "shock, horror" charade of this government. They know it's been going on and, most likely, the last Labour government knew it was happening, but did nothing.