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Report: Royal Bank of Scotland abused small businesses during financial crisis

Neil Hodge | February 27, 2018

Last week, U.K. bank Royal Bank of Scotland revealed that it had made a profit for the first time in 10 years since its £45 billion (U.S.$63bn) government bailout at the height of the financial crisis. However, the £752 million (U.S.$1bn) profit it made for the past financial year is in stark contrast to the £58 billion (U.S.$80bn) it has lost in the past nine years as part of its restructure and is of little comfort to the thousands of distressed small-business owners that the bank—which is still 71-percent owned by the taxpayer—deliberately targeted by charging excessive fees to claw back cash. 

The United Kingdom’s banking regulator, the Financial Conduct Authority (FCA), first commissioned a report back in 2014 into RBS’ Global Restructuring Group (GRG), a specialist unit run within the bank to turnaround struggling small- and medium-sized enterprises (SMEs), following allegations made by former clients from 2009 to 2010 that the bank was more intent on saving itself... To get the full story, subscribe now.