Embattled Royal Bank of Scotland boss Ross McEwan yesterday denied the lender undertook a “systematic” effort to profit on the back of its troubled business customers.
He was responding after reports emerged that the Serious Fraud Office (SFO) was considering launching a criminal investigation over claims the bank defrauded small and medium-sized businesses.
Mr McEwan said a review into business practices at its Global Restructuring Group would consider allegations that struggling small businesses were mistreated.
He said the most serious allegation was that RBS “conducted a systematic effort to profit” on the back of troubled customers. “We do not believe that this is the case, but it has nonetheless done serious damage to RBS’s reputation. No evidence has been provided for that allegation to the bank. The review will investigate the claim fully and I will report back on its findings.”
The allegations relate to a report published on Monday by businessman Lawrence Tomlinson. He claimed RBS had unnecessarily engineered defaults, which boosted the bank’s revenue on the back of expensive fees and higher interest rates, while assets could be seized at devalued prices.
It is thought the SFO has received a dossier from Neil Mitchell, a former chief executive of Torex Retail, and interviewed him.
Mr Mitchell acted as a whistleblower at the former AIM-listed software company which resulted in jail sentences for two of its former directors.
In addition to his claims, it is thought the SFO has interviewed former executives of UK businesses involved with Global Restructuring Group.
Mr McEwan added: “RBS played a big role in the lending boom that led to the UK’s economic crisis. After the crash, tens of thousands of our customers saw their asset values plummet and ended up in serious financial difficulty.
“This was an economic crisis for Britain, but it was also a very personal tragedy for many families and small businesses around the country.”