British officials released on Tuesday a complete confidential report regarding the Royal Bank of Scotland. The report detailed the bank’s mistreatment of struggling businesses during and after the financial crisis.
“The findings in the report are disgraceful,” stated Chair of the cross-party Treasury Select Committee, Nicky Morgan.
A statement released by the TSC said that it agreed to immediately release a final, unredacted report. It discussed the findings of an inquiry done to RBS’s then-restructuring unit GRG.
“The overarching priority at all levels of GRG was not the health and strength of customers, but the generation of income for RBS, through made-up fees, high interest rates, and the acquisition of equity and property,” said Morgan.
RBS continues to deny the most serious allegations it received from customers. The bank insists that it did not purposely pushed firms into bankruptcy just to pick up their assets more cheaply.
The company did accept that it was guilty of some wrongdoing. RBS then set aside 400 million pounds to compensate firms as it began rebuilding reputation a decade after the crisis.
The lawmakers’ decision was made after a prolonged argument with the Financial Conduct Authority (FCA). The latter commissioned the report but refused to publish it in full.
In the defense of the FCA, it said that it cannot legally release the report until those involved had a chance to respond. The regulatory body is responsible for and is still investigating the scandal.
HSBC Works on Strengthening the Company
For the past seven years, HSBC has been restructuring itself which involved cutting off thousands of jobs and bank branches. It has finally come to fruition after the bank posted profits which rose more than 140 percent over the past year.
Regardless, according to HSBC Chairman Mark Tucker, the job of strengthening the company is not yet over. On Wednesday he said that the ever-changing global environment calls for a more agile business strategy.
“I think strategy evolves in a dynamic environment, and therefore must be dynamic by its nature,” said Tucker in an interview. “We have a business that is performing well, we have a strategy is working, but are there opportunities to get better clarity and do things better? The answer is yes.”
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