A soon to be released FCA report on the Royal Bank of Scotland’s Global Restructuring Group scandal is to recommend an RBS GRG Review compensation scheme for businesses that were damaged by the GRG division, reports Exaro News.
While the article quotes are essentially correct that a GRG Review scheme is likely to be quicker and easier than litigation, they miss the fundamental point that litigation is a process that is designed to be fair whereas the conduct of RBS in administering their FCA agreed review schemes is notoriously unfair and is designed to reduce or eliminate redress compensation.
It is likely to be sensible for businesses that were victims of GRG to consider their own litigation case against the bank. Indeed, following the pre-action litigation process while the GRG Review is being run in parallel is relatively inexpensive and is likely to yield optimal results. LEXLAW issued more High Court litigation for IRHP mis-selling than any other law firm in the UK and have experience of using litigation against RBS to obtain optimal compensation for victims of RBS wrongdoing.
We are the leading law firm with the skill and experience to act for businesses seeking to resolve wrongdoing by bank recovery departments often titled ‘business support’, ‘restructuring’ or ‘turnaround’ departments. We are aware that some major banks have regularly engineered defaults and created and profited from distress, often caused by other departments of the bank including via wrongdoing such as LIBOR manipulation, deliberate concealment of credit utilisation and mis-sold derivatives
What is GRG?
NatWest and RBS’s Global Restructuring Group, was a business support unit (BSU) for troubled businesses set up in the early nineties by Derek Sach and was formerly known as Specialised Lending Services. Following the credit crunch, GRG took control of 16,000 SME customers with £65 billion of assets via ‘Project Dash for Cash’. Following allegations of misfeasance, GRG was reportedly disbanded in August 2014.
Distressed customer relationships are now handled by the Restructuring Group.