140 small firms sue RBS for £1bn after claiming its turnaround unit forced them into administration
This Is Money, 21.08.16
Small businesses are launching a £1billion legal case against Royal Bank of Scotland – claiming they were destroyed by its turnaround unit.
The 140 companies say they were pushed into administration by NatWest owner RBS’s global restructuring group so the bank could use their assets to pay down its debts.
They have also accused the City watchdog of sitting on a report into the GRG, which it says is not yet finished.
The businesses had intended to wait for this to be published before acting, but have said they cannot hold on any longer.
Active during the financial crisis, the GRG was meant to help struggling firms stay afloat. But it has been alleged that the group deliberately sought to sink them instead.
In 2013, a report by Government-backed entrepreneur Lawrence Tomlinson argued that executives at many companies were ‘forced to stand by and watch an otherwise-successful business be sunk by the decisions of the bank’.
RBS denies the allegations.