A division of the taxpayer-owned RBS bank which was meant to help companies in trouble mistreated many of its clients but did not try to “profit from their distress”, according to a leaked report by the regulator, the Financial Conduct Authority. The GRG unit, which operated between 2005 and its closure in 2013, stepped in when companies which banked with RBS experienced financial difficulties. The leaked report found that struggling companies had a small chance of re-emerging in a healthy state, with only one in 10 returning intact to the main RBS bank. The FCA provided a summary of the findings last year but the full report calls for a fundamental review of how RBS handles small business customers in financial distress. An FCA spokesman said many of the activities carried out by GRG were largely unregulated and its powers were therefore limited.

Source: The Guardian August 25, 2017 20:26 UTC