As thousands of small and medium enterprises (SMEs) wait to hear the results of the investigation into the Royal Bank of Scotland (RBS), the bank is setting up a compensation fund of E300 million. Despite refusing to admit wrongdoing for its predatory practices during the financial crisis, chief executive Ross McEwan “is now preparing to announce a scheme to pay redress to customers in its global restructuring group – known as GRG and since disbanded."
For those new to the RBS scandal, GDN wrote an article covering the lending practices of the GRG group and how they made E1 billion in preying on small and medium businesses, resulting in the bankruptcy of thousands. The Financial Conduct Authority (FCA) has been investigating the bank for years, but has constantly delayed releasing results of the investigation. The first results were supposed to be released in December 2015.
RBS may just be beginning it’s court battles however as it "also faces a bill from the Department of Justice in the US for the way it sold mortgage bonds a decade ago. Some analysts reckon this could amount to £9bn.”