LONDON (Reuters) – A British lawmaker on Thursday put the boss of Santander UK on the centre of a rising political storm over the Royal Bank of Scotland’s (RBS) treatment of small companies throughout and after the monetary disaster.
Vince Cable, chief of the Liberal Democrats, stated in a parliamentary debate that Nathan Bostock, who held quite a few senior roles at RBS together with that of head of restructuring and threat, bore some duty for the conduct of the financial institution’s Global Restructuring Group (GRG).
The unit dealt with some 12,000 struggling corporations between 2007 and 2012, and accusations that it pushed some into chapter 11 to choose up their property on a budget have dogged the financial institution’s efforts to reform its picture a decade on from the monetary disaster.
The Financial Conduct Authority has pointed to quite a few failings at RBS however stopped wanting upholding essentially the most critical allegations. A report by the regulator into the matter has by no means been printed in full.
Cable stated the complete report concluded that RBS administration “knew, or should have known”, that GRG’s mistreatment of consumers was an “intended, co-ordinated strategy”.
“The head of GRG responsible for that policy, Mr Nathan Bostock, is now chief executive of Santander,” Cable stated, dragging Bostock right into a scandal that has weighed on RBS’s fame for years.
A gaggle of 500 small companies affected by GRG referred to as on the FCA and Bostock to make clear his involvement with the issues on the unit, its spokesman stated in a press release.
Santander UK declined to remark.
The debate follows the publication on Wednesday of a 2008 inside RBS memo written by a junior supervisor on the financial institution, which confirmed employees inside GRG got an inventory of how to squeeze more cash from the unit’s troubled purchasers.
RBS has put aside 400 million kilos ($555 million) to cowl the invoice for claims in opposition to it over the actions of GRG, and it has acknowledged some dangerous observe on the unit.
“We recognise how traumatic this period was for many customers and have acknowledged for some time that mistakes were made,” an RBS spokeswoman stated.
“The regulator has confirmed that the steps we have taken to address concerns were appropriate,” she stated.
Thursday’s parliamentary debate topped off a tough week for RBS, which additionally drew criticism for demanding harder phrases on its lending to British development outsourcing company Carillion within the run as much as the agency’s collapse.
The financial institution was one among quite a few main British lenders to announce measures on Thursday to assist small corporations hit by the company’s demise.
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Reporting by Emma Rumney; Editing by Hugh Lawson