Loss-making RBS facing £1bn claim it destroyed small firms and stripped their assets
This is Money, 26.04.16
Loss-making Royal Bank of Scotland could be facing a £1billion damages claim over allegations it destroyed small businesses for a profit.
The claims centre on the NatWest owner’s now-closed Global Restructuring Group, which was set up to support struggling firms.
But some of those who sought its help argue the bank instead stripped their assets and pushed them to bankruptcy.
Claims firm RGL Management, which launched last month to represent aggrieved bosses, has already processed 50 claimants and is working with many more.
Chief executive James Hayward said: ‘Thousands of businesses went through GRG. We believe we have a strong case.’
RGL has hired law firm Humphries Kerstetter to fight its corner and hopes to start a formal legal process later this year.
It comes as RBS prepares to post first-quarter results on Friday, with analysts predicting a £1billion loss – more than twice as much as the same period in 2015.
Its results will round off what is widely expected to be a bleak week for investors as major High Street lenders update the markets.
Standard Chartered will open the results run this morning, followed by Barclays tomorrow and Lloyds on Thursday. HSBC will give an update next Tuesday.