RBS boss withheld information from MPs about criminal investigation, Treasury Committee says

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MPs have accused RBS chief government Ross McEwan of withholding data from the Commons Treasury Committee a few police investigation right into a former worker of the financial institution’s notorious World Restructuring Group (GRG).

Committee chair Nicky Morgan stated in a letter to Mr McEwan that his clarification for not disclosing information of the legal investigation was unconvincing and match a “sample of defensiveness” within the financial institution’s dealing with of the GRG scandal.

Regulators discovered that RBS’s restructuring unit, which was supposed to assist companies in problem was responsible of widespread inappropriate therapy leading to “materials monetary misery”.

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Requested by the committee in January if he was conscious of any allegations of legal exercise throughout the financial institution, Mr McEwan stated: “Not that we’ve got seen or had reported, and definitely none that the police of Severe Fraud Workplace are taking a look at, to our information.”

But it surely later emerged that RBS was made conscious in July 2017 of probably legal conduct by a former GRG worker which police in Scotland subsequently started investigating.

Following an article in The Occasions in June this 12 months, Mr McEwan wrote to the Treasury Committee to clarify why he had not talked about the investigation when questioned.

“In relation to that article we’d solely reject the suggestion that the committee might have been in any method misled by the proof that I gave throughout my look earlier than you in January,” the RBS boss wrote.

He added that the investigation was not in relation to the problems at GRG being thought-about by the FCA and the committee.

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In response, Ms Morgan stated she was unconvinced by that clarification. 

The committee “expects readability and openness from witnesses, and Mr McEwan’s proof fell in need of that normal”, Ms Morgan stated.

“Extra typically, the committee is anxious by the sample of defensiveness, and a failure to acknowledge errors, demonstrated by RBS all through its dealing with of the GRG affair. 

“Mr McEwan’s letter to me is an instance of this, and it casts doubt on his assurances that RBS’s tradition has modified basically since he took up his place 5 years in the past.

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“If the committee decides to ask Mr McEwan to supply additional oral proof, it’s going to count on him to inform the entire reality, not an edited model to swimsuit him.”

In July, the FCA confirmed that it has no energy to take motion towards RBS senior managers over GRG’s therapy of small corporations.

The Metropolis watchdog final 12 months launched an investigation into the unit, which operated between 2005 and 2013, after allegations corporations had been pushed out of business so RBS may purchase up belongings cheaply to spice up its personal earnings.

In an replace to the investigation in July, Andrew Bailey, the FCA’s chief government stated he had solely “very restricted” powers to take motion as a result of lots of GRG’s actions weren’t regulated.

Mr Bailey stated: “Taking motion was due to this fact all the time going to be tough and difficult however after fastidiously contemplating all of the proof we’ve got concluded that our powers to self-discipline for misconduct don’t apply and that an motion in relation to senior administration for lack of health and propriety wouldn’t have cheap prospects of success.”

Supply hyperlink – http://www.unbiased.co.uk/information/enterprise/information/rbs-investigation-crime-ross-mcewan-grg-scandal-information-treasury-committee-a8536516.html

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