Break up bank oligarchy says Tomlinson in light of damning RBS report
PROLIFIC businessman Lawrence Tomlinson has welcomed fresh evidence supporting his 2013 report, that the Royal Bank of Scotland purposely damaged businesses to improve its balance sheet.
RBS’ Global Restructuring Group was dubbed the ‘vampire division’ by The Times, which uncovered evidence that it was driving businesses into the ground, despite being intended to help guide businesses back to financial health.
Employees were purposely trained and pressured into identifying the impact of SMEs on the bank’s capital ratio, stripping the assets of companies and piling fees on companies that could have adversely affected their capital position.
Mr Tomlinson said: “The evidence, uncovered by The Times, seems to confirm that GRG was the tool RBS used to implement their strategy of reducing non-core assets”, backing up Mr Tomlinson’s 2013 report which found worrying patterns of behaviour at RBS, that suggested it was destroying viable and even healthy businesses.
Mr Tomlinson said: “It looks as if many businesses have been the unwitting victims of RBS’s desire to strengthen its balance sheet. This is another example of the interests of the bank and those of its customers being two very different things.”
He added:”I’m delighted that this has come to light so close to the General Election giving whichever party, or parties, who form the new Government impetus for change.
“Splitting up the banking oligopoly by breaking up RBS and Lloyds is the only tenable way of refocusing the banks on their customers’ needs, injecting competition back into the market.
“The onward impact will be felt across the UK economy, supporting the industries which are the powerhouse for growth and exports.
“Whilst it is now too late for the parties to include measures into their manifestos, once the Government has formed there should be a drive to implement policy which will secures more banking competition.
“I will be very willing to work with the new Government to assist them to create a banking market place which works in the favour of businesses across the UK.”
Lawrence Tomlinson, a Yorkshire entrepreneur who owns the LNT Group and Ginetta, the specialist manufacturer of racing cars, was an Entrepreneur in Residence at the Department for Business, Innovation and Skills at the time of the Tomlinson Report.
