Royal Bank of Scotland may face a criminal investigation into whether it forced small companies to the wall in order to strip them of assets.
The UK’s Serious Fraud Office (SFO) is examining allegations that RBS engineered defaults in SMEs in order to buy their assets at knockdown prices. The allegations emerged on Monday, when a government advisor published a report into lending to SMEs.
Go deeper with GlobalData
Lawrence Tomlinson, entrepreneur in residence at the Department for Business, Innovation and Skills, said: "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.
"I look forward to seeing how RBS proposes to take forward the forensic investigation into this part of the bank."
The SFO is investigating whether RBS was involved criminal activity or whether the bank was engaging in lawful business practice, however unethical.
The Tomlinson report has been handed to the City watchdog and RBS is also conducting an internal investigation.
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 GlobalData
Related articles:
Clifford Chance will examine allegations that RBS pumped small businesses for assets
Lending at RBS was "like an A&E ward being used as an organ harvesting operation"
RBS to confront ‘seismic shift’ in banking with move away from branches
