Vince Cable sends dossier of RBS treatment of ailing businesses to regulator – report

Vince Cable sends dossier of RBS treatment of ailing businesses to regulator – report

Vince Cable, the Business Secretary, has sent evidence of the Royal Bank of Scotland’s alleged treatment of businesses facing financial difficulty to the Financial Conduct Authority, Sky News reports.

The news group said the dossier related to the bank’s global restructuring group (GRG), which is called in when businesses with loans are regarded to be in trouble.

Sky News said the material was compiled by Lawrence Tomlinson, a businessman who also advises the Department for Business, Innovation and Skills (BIS).

In August, The Telegraph reported that Mr Tomlinson had handed a dossier to Mr Cable that he said revealed banks’ “disturbing patterns of behaviour” towards small and medium-sized businesses. At the time Mr Tomlinson accused banks of loading punitive charges on struggling companies to maximise returns and bonuses and of “making directors passengers in their own businesses”.

Sir Andrew’s report, commissioned by RBS chairman Sir Philip Hampton, concluded that the bank needed to overhaul its entire SME lending operations.

RBS and Mr Cable declined to comment and Mr Tomlinson could not be reached for comment on Saturday.

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