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Royal Bank of Scotland CEO ‘edited’ the reality in proof session – British lawmakers

LONDON (Reuters) – British lawmakers on Friday accused Royal Bank of Scotland (RBS) Chief Executive Ross McEwan of withholding info when he gave proof to their committee in January, a cost the CEO disputes.

FILE PHOTO: Royal Bank of Scotland chief govt Ross McEwan speaks throughout an interview with Reuters at Canary Wharf in London, Britain July 7, 2015. REUTERS/Neil Hall

Nicky Morgan, chair of Parliament’s Treasury Committee, stated McEwan did not disclose, when requested whether or not there had been any legal exercise on the state-controlled financial institution, that one in every of its former staff was underneath investigation by police, regardless of RBS having been conscious of this since 2017.

McEwan stated in a press release he didn’t disclose the data as a result of he didn’t contemplate it associated to the topic underneath dialogue with lawmakers.

The CEO was known as earlier than the Treasury Committee to debate allegations of malpractice at RBS’s restructuring unit within the aftermath of the monetary disaster.

Britain’s Financial Conduct Authority investigated the unit for the interval from 2008 to 2013 and concluded that many features of its tradition, governance and practices had been “deficient,” though there had not been legal exercise.

FILE PHOTO: Royal Bank of Scotland indicators are seen at a department of the financial institution, in London, Britain December 1, 2017. REUTERS/Peter Nicholls/File Photo

As the police investigation into the worker associated to a later interval, McEwan didn’t contemplate it related to the committee’s inquiry. “I replied to the committee’s questions in good faith,” he stated in a press release.

However, Morgan stated his rationalization in a letter to the committee was unconvincing.

“If the committee decides to ask Mr McEwan to provide further oral evidence, it will expect him to tell the whole truth, not an edited version to suit him,” she stated in a press release.

The Treasury Committee is an influential group of lawmakers. In June, the committee stated it had “lost confidence” in TSB financial institution boss Paul Pester after an IT disaster. Under widespread stress, Pester stepped down this month.

Morgan stated RBS had displayed a “pattern of defensiveness” and “failure to acknowledge mistakes” all through its dealing with of the issues on the restructuring group.

“McEwan’s letter to me is an example of this, and it casts doubt on his assurances that RBS’s culture has changed fundamentally since he took up his position five years ago.”

Reporting by Emma Rumney; Editing by Mark Potter

Our Standards:The Thomson Reuters Trust Principles.

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