The Royal Bank of Scotland is facing accusations that it drove small businesses into the ground in order to strip their assets.
Lawrence Tomlinson, entrepreneur in residence at the Department for Business, Innovation and Skills, has published a report which he says shows RBS sabotaged companies in order to seize their properties and assets when they went into default.
Go deeper with GlobalData
Commenting on the accusations, Andre Spicer, professor of organisational behaviour at Cass Business School, said: "The review suggests business lending at RBS was like an A&E ward being used as an organ harvesting operation.
"It alleges distressed businesses were pushed into special measures, then put under additional pressure. When they went into receivership, they were carved up for a profit.
"One of the big drivers of this approach seemed to be a lack of an ethic of care on the part of the bank. When relationship managers went out of their way to stay in touch with businesses going through hard times, they were punished."
Tomlinson’s report, now passed onto the City watchdog, was written independently over the last six months and centres on the turnaround division at RBS – what it calls the Global Restructuring Group.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataSpicer said: "How Tomlinson came to his conclusions is not made completely clear in the report.
"It appears he mainly focused on informants who would give him horror stories. This means the sample is probably biased towards less than positive findings.
"However, evidence from other inquires by journalists seems to support the general thrust of the report."
Related articles:
RBS to confront ‘seismic shift’ in banking with move away from branches
RBS and Barclays to drop premium rate telephone lines
UK government’s Help to Buy scheme is success, say RBS and Halifax
