RBS in the dock over claims it misled select committee

Andrew Tyrie was critical of the evidence RBS gave to parliament Times Newspapers Ltd

Last updated at 12:01AM, July 23 2014

Royal Bank of Scotland has been heavily criticised for misleading MPs over its contentious division for struggling businesses.

Andrew Tyrie, chairman of the Treasury Select Committee, said that the bank had been “wilfully obtuse” in evidence it gave to the committee about its global restructuring division, which has been accused of exploiting ailing companies rather than helping them.

Having repeatedly told MPs that GRG was not a “profit centre”, RBS has admitted that the description was accurate. Chris Sullivan, the bank’s deputy chief executive, told the committee last month that GRG was “absolutely not a profit centre” and that describing it as such would be “totally inappropriate”.

Mr Tyrie said: “If this is how RBS deals with a parliamentary committee, how much can customers and regulators rely on it to be straightforward?”

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FT – UK banks face full industry inquiry

Last updated: July 18, 2014 7:19 am

Pedestrians walk by shops on the high street Guildford, UK©Bloomberg

Britain’s biggest high street banks face the threat of being broken up after the UK competition authorities announced their intention to conduct a wide-ranging probe amid growing frustration among politicians, consumers and small businesses at the lack of competition between them.
Before the markets opened on Friday, the Competition and Markets Authority confirmed it had provisionally decided to launch a full-blown competition review into the UK banking sector. Read more

Ian Fraser: RBS is a ‘Rogue Institution’ and is Dangerously in Denial About Tomlinson

Ian Fraser July 14

Ian Fraser Author of ‘SHREDDED’ the book that exposes RBS

The Royal Bank of Scotland was guilty of “acting like a rogue institution” towards its struggling business customers, according to author Ian Fraser, who has a history of arraigning RBS in books articles and documentaries. Speaking to IBTimes TV about his latest book, Shredded: Inside RBS – The Bank that Broke Britain, Fraser reveals his major concerns over how RBS chose to denounce the now-infamous Tomlinson Report, which claimed the bank engineered businesses into default while profiting from their struggles. See video See article + video link

Global Banks Have Become An Enterprise Criminal Mafia

…The British banking sector has become an organised criminal enterprise which has been allowed to develop because of the criminogenic environment in which it functions, which has resulted from the absence of any meaningful regulation which those who control and manage the banks would fear. By Rowan Bosworth-Davies Ex Met Detective:“…The British banking sector has become an organised criminal enterprise which has been allowed to develop because of the criminogenic environment in which it functions, which has resulted from the absence of any meaningful regulation which those who control and manage the banks would fear. Read more..  

RSA Group chief executive Stephen Hester – A banking blow-up and gardening leave: What Mr Fix-It did next

es-masthead-smallStephen HesterJames Ashton 4/7/14,

There is a work-in-progress feel to Stephen Hester’s new office.

High up in the Walkie-Talkie skyscraper, a black gauze is pulled over the windows on one side to neutralise what has been dubbed the Walkie-Scorchie’s death-ray glare that warped parked cars last summer. read more

Treasury Select Committee meet with RBS Derek Sach & Chris Sullivan – Unbelievable!


Derek Sach Head of RBS GRG and Chris Sullivan, RBS Deputy Group Chief Executive

Derek Sach Head of RBS GRG and Chris Sullivan, RBS Deputy Group Chief Executive

CLICK HERE TO SEE THE FULL VIDEO

Click here for a full transcript of the entire interview 

DRAFTS OF CLIFFORD CHANCE REPORT DENIED BEING SEEN BY DEREK SACH OR CHRIS SULLIVAN - 
OH HOLD ON - YES I REMEMBER NOW - ONE DRAFT WAS SEEN / KNOWN ABOUT BY DEREK SACH 
AND HE REVIEWED THE FIGURES FOR ERRORS!
  • 11:36:35 Question: “Which brings us to the Clifford Chance review, you’ve described that as Independent. Doesn’t Clifford Chance do business for RBS?”
  • Answer Derek Sach “Yes we do business with all of the large corporate lawyers, um you have to choose somebody of stature. In the case of Clifford Chance, they provided a partner with relevant experience who has never done any work for RBS. Um you have to assume that people such as that do have integrity. Having seen the report I have no reason to believe that they did not exercise complete independence.”
  • 11:37:26 Question John Mann MP “Drafts of the report were submitted to you?”
  • 11:37:31 Answer Derek Sach “I have no idea because I had no part of being the subject of the report.
  • 11:37:40 Answer Chris Sullivan “I have no idea either, I never saw a single draft.”
  • 11:37:56 Question Chairman “Are you confident that drafts were not seen?”
  • 11:37:46 Answer Derek Sach “Drafts were certainly back checked by the organisation, because obviously when you prepare a lengthy document, there are going to be errors of fact that need to be corrected.”
  • 11:38:00 Question John Mann “How do you know that?”
  • Answer DS “I was asked to check some figures used here and there in the report.”
  • 11:38:14 Q JM: “So there were drafts that were seen?”
  • Answer DS “Well there was certainly one, but whether there were more I don’t know.”
  • Q JM: “And was anything altered in the draft in process?”
  • A DS “So far as I am aware, only errors of fact”

So Derek Sach is not acting with integrity himself. He disingenuously denies that he had not seen a draft report, but then is forced to admit (because he is in a corner) that there was at least one draft report, that he had checked some figures on!

Can we / the public believe anything that comes after this point from Derek Sach, Head of RBS Global Restructuring Group (GRG)?

GRG LOSS MAKING ENTERPRISE!

  • 11:38:37 Q John Mann MP: “You have been with GRG a long time Mr Sach, how much has it contributed to the bank’s profits?”
  • A DS “It doesn’t contribute to the banks profits at all. Our main aim is to restore our customers to health and strength.”
  • QJM “So you’re saying that GRG makes no money for the bank?”
  • A DS “In total if you look at what GRG achieved over the 5 year period in question, the customers we looked after in this particular area, the SME area, lost £2.1 Billion for the bank.
  • QJM “My question is what does GRG make in terms of profits for the bank?”
  • A DS “It doesn’t make a profit for the bank it has income in the form of fees, um, it sometimes has equity realisations if it has taken an equity stake in the past in something. But against that you have the cost of running it. But also these conections, there are the impairmants.”
  • Q JM: “So GRG runs at a loss is what you are saying for the bank?”
  • A DS: “If you look at the portfolio we look at, yes it runs at a loss.

GRG HIGHLY PRAISED BY ITS CUSTOMERS!

  • 11:50:28 Question “If we were to poll, with respect to the confidentiality of the replies these 10,000 customers, is it your view that the majority would be expressing gratitude for their contact with GRG?”
  • Answer Derek Sach “……………our people have a lot more time to spend with the customer and are very thoroughly trained in their restructuring skills……”
  • Question “So is the answer that they would be expressing gratitude?”
  • Answer “Yes I would hope so although we don’t actually ask them that question, but that are asked are they satisfied with what we do, are we delivering what we promise etc, then yes they would do, the majority would.”

NO DECISIONS TAKEN ON INTERNAL GRG VALUATONS!

  • 11:58:30 “It is often very useful for someone internally to say, I would estimate that property is worth X, but no significant decision is ever taken on that sort of valuation, it is an informal part of the internal process.” Mmm as Steve would say!
  • 11:59:00 “If we want to take action and the customer is disagreeing, then we would have a formal valuation done by a third party, which the customer would instruct in nearly all circumstances and the reason we do it internally sometimes is because it saves the customer money.” Mmmmmmmm Steve would say!
  •  11:59:53 Question What about the underlying business practice of threatening to remove a business overdraft in order to get more leverage in negotiations about equity, I know you have changed the wording of the [training] manual but what about that practice?” Answer D Sach “ the reality is not so either –ummm!” Question “You deny that just ever took place?” Answer “Yes and I have found no examples of it. Clifford Chance asked me about that in my interview with them and it would be something  that concerned me, I and thay can find no evidence of that happening.”

Presumably if there is anyone that can show that an internal valuation was used to take a significant decision, or was not given the opportunity to instruct a formal valuation, or was threatened with overdraft cuts during equity negotiations, they would all have bona fide complaints and require requisite compensation! RBS cannot have it all ways!

FCA Fines Credit Suisse and Yorkshire Building Society 16-06-2014

The Financial Conduct Authority (FCA) has today fined both Credit Suisse International (CSI) and Yorkshire Building Society (YBS) for failing to ensure financial promotions for CSI’s Cliquet Product1 were clear, fair and not misleading. CSI was fined £2,398,100 and YBS’s fine was £1,429,000.  

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Bank admits snooping on two brothers in legal dispute over land deal

Ian Fraser says: New low for @RBSGroup as it admits to hiring private detectives to spy on its enemies.

Belfast Telegraph  ARTICLE BY GREG HARKIN – 09 JUNE 2014

Ulster Bank has admitted it hired private detectives to spy on the homes of two Co Londonderry brothers it is fighting in a legal battle over a major land deal. READ MORE

Shredded Inside RBS The Bank That Broke Britain: ‘The pimp, the ghetto of fraud and the whorehouse of debt’

51X7rpKpfcL._ By Ian Fraser

CLICK HERE TO BUY SHREDDED from AMAZON or BIRLINN or WATERSTONES or THE GUARDIAN BOOK SHOP

It has been nearly two years in the making, but Shredded: Inside RBS The Bank That Broke Britain was published by Birlinn on 05/06/2014. It’s a look at the Icarus-like ascent of RBS under former chartered accountant Fred “The Shred” Goodwin, and examines many aspects of the bank’s spectacular rise and fall which have never before come under the microscope.

Max Keiser of the Keiser Report says:

“Take a good look at this book because this is going to be skyrocketing up the bestseller lists around the world.

“I get the impression that [Fred Goodwin] becomes like a ghetto pimp, he becomes ghetto rich, you know these pimps, they make a few bucks, and they get the flashy car, and the fancy fur coat, and they strut around the ghetto. So here you have the ghetto of financial fraud, and there’s’ Fred Goodwin flashing his cash like a pimp, and the rest of the banking industry, they emulate that, they’re like ‘we want to be pimps too’.  [Goodwin was strutting his stuff as he lured all and sundry into RBS’s] whorehouse of debt …

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Wall Street Threaten to Blow Up Economy If They’re Prosecuted

https://lh3.googleusercontent.com/-d3tn0ZzcMTU/TM3rPQnUFqI/AAAAAAAAAGQ/9eo7P3nrymw/s400/suicide_banker.jpg

Banksters Pretend that Prosecuting Wall Street Crime Will Blow Up the Economy

Banksters Pretend that Prosecuting Wall Street Crime Will Blow Up the EconomyThe Department of Justice is “considering” initiating criminal charges against 2 banks.

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