LONDON Feb 10 Royal Bank of Scotland
has rejected calls to beef up a 400 million pound ($502 million)
scheme to reimburse customers who say they were mistreated by
the bank's business restructuring division.
Andrew Tyrie, a politician who chairs parliament's Treasury
Select Committee, wrote to the bank asking if the amount was too
low because a customer action group planning to sue the bank
already has claims worth 2 billion pounds.
Chief Executive Ross McEwan replied saying the money was to
repay sales charges that should have been explained more clearly
and was not intended to repay large numbers of customers who say
the bank deliberately pushed their companies into
"It is highly unlikely that businesses suffered material
financial distress as a result of the bank's actions," McEwan
said in his letter to Tyrie, which the politician published on
Friday along with his letter to McEwan.
RBS's Global Restructuring Group (GRG) has been accused of
pushing some companies into bankruptcy so it could pick up their
assets more cheaply.
The state-backed bank has admitted some wrongdoing over its
handling of small businesses, but has said there was no evidence
it pushed companies into bankruptcy.
Tyrie wrote a separate letter to Britain's financial
regulator asking the watchdog to fix a publication date for its
long-delayed review into the allegations.
Andrew Bailey, chief executive of the Financial Conduct
Authority (FCA) replied to Tyrie saying the FCA would publish a
full account of its findings on GRG once it had completed
investigations into issues raised by the so-called "skilled
person" review conducted by consultancy Promontory Financial
Group. Bailey's reply was made public by Tyrie.
The FCA had hoped to publish its findings by the end of
2016. It said in November it found no evidence of systemic
"The FCA will provide a further update on this matter when
it is in a position to do so and will publish a full account of
its findings when practicable once our work is concluded,"
Bailey said in his letter to Tyrie.
Bailey's letter also said nothing in the information related
to GRG reported by Buzzfeed and BBC Newsnight in October
"materially changes the findings of the skilled person that we
announced in November 2016".
BBC and Buzzfeed had reported that the documents leaked by a
whistleblower supported allegations that RBS tried to profit
from struggling businesses.
($1 = 0.7961 pounds)
(Reporting By Andrew MacAskill and Huw Jones. Editing by Jane