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Royal Bank of Scotland apologises for lying to MPs’ committee

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  • 24/11/2014
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Royal Bank of Scotland apologises for lying to MPs’ committee
Royal Bank of Scotland has apologised for giving ‘incorrect evidence' to a parliamentary hearing, according to a BBC story.

Bank directors appeared before the Treasury Committee in June to answer claims that RBS’s Global Restructuring Group (GRG) withdrawn critical funds from viable small to medium-sized firms.

Newly-released letters from RBS chairman Sir Philip Hampton later said some of the evidence “lacked clarity”, according to the BBC.

Committee chairman Andrew Tyrie has branded the evidence “unacceptable”.

GRG handled RBS’s loans to companies considered to be a possible risk. But allegations emerged that CRG had deliberately forced forclosure on some viable companies in a report from an adviser to Vince Cable, which also claimed RBS was making money out of small and medium-sized business that were in financial distress.

The committee was concerned that GRG was itself being run to make a profit. But senior directors Derek Sach and Chris Sullivan gave evidence to the committee that suggested this was not the case.

However, in his subsequent letter to Mr Tyrie, Sir Philip did accept that GRG was a profit centre, adding: “This lack of clarity on an important point is very disappointing to the committee as it is to me, and I apologise.”

But he said the two executives had made an “honest mistake” when addressing the committee.

Tyrie also questioned the reliability of other evidence, including the extent of GRG’s powers, and statements given about a West Midlands-based company used to publicise the division’s success.

 

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