How Many GRG Were Not Kept?
RBS urges it has revamped its culture, structure and way of operating in light of the misbehaviour of Global Restructuring at RBS. Only 2 of the 32 senior managers in RBS’s disgraced Global Restructuring Group are not being employed for the new Restructuring unit. The defunct GRG is under inspection for ill-treating customers and being claimed by RBS that it has been revamped the culture but the discovery undermines the claims.
As well as the senior managers, 136 of the GRG’s 182 employees have been kept on in the new unit of Global Restructuring Group at RBS. The leader of the unit is the former GRG head, Laura Barlow. Now the executive of Santander UK, Nathan Bostock, who was responsible for reconstructing and risk at RBS to 2013
“The discovery of almost all the senior management in the new unit formerly worked at GRG raises issues that there has merely been a re-branding activity,” said Nicky Morgan, chair of the Treasury committee. The topic of a regulatory investigation, GRG, of allegations that it has mistreated its small business, following the financial crisis.
How Has The FCA Reacted To GRG’s Actions?
Financial Conduct Authority launched an initial investigative report into the Global Restructuring Group at RBS, four years ago. Which was by the select committee after leaked duplicated that was passed between politicians and the media.
What Did The Report Say About GRG?
The report exposed “particular spreading unsuitable care for a customer of SME” that “need to be thought about carefully”. Promontory alleged that GRG management failed to manage key disputes between the need to be a profit centre and its remit to help customers in hardship.
“The Promontory report described the toxic culture, the training programme and performance objectives of the staff” Stated Ross McEwan, RBS chief executive when Ms Morgan asked. RBS insisted on Tuesday that it had revamped its culture, structure and way of functioning since GRG.
“We have made significant changes to deal with the past problems, involving how I care for our customers in stressful times due to financial problems,” the bank said. “The changes the bank has made align with the relevant recommendations from the report and the majority were made before we received the report. Our focus is now on rebuilding trust and supporting our customers.”
The FCA’s investigation is encompassing feasible management fault.