The Royal Bank of Scotland Plc last week (25 April 2014) had its plans to pay large bonuses (twice the size of salaries) dashed by UKFI.
UKFI is the managing body of the public stake in the RBS and today told the Bank that any such bonus plans would be vetoed at a shareholder meeting due to
“the Bank still being in recovery.”
The Bank’s reason for offering such bonuses was to match competitors, but UKFI has restricted this due to the Bank’s continued financials, which demonstrate that the bank is still requiring a “Global Restructure”.
Conversely, bonuses twice the size of bonuses at Lloyds Bank Plc will be allowed by UKFI as they have
“largely completed its restructuring”.
The news is somewhat ironic, finally bringing an instance where RBS are made to taste their own bitter medicine when parallels are drawn between RBS’ own recovery and RBS’ treatment of SME’s it claims are in recovery.
The report by Clifford Chance last week found
“no evidence of systematic fraud” behind RBS’ Global Restructuring Group. However, the review conducted by the Financial Conduct Authority into the oppressive and restrictive treatment of SME’s that are deemed to be “in recovery” by RBS continues, and Berg
has been invited to discuss our cases with the independent reviewer instructed by the FCA.
For more information about issues relating to RBS and GRG or for practical commercial advice on this or any other aspect of banking and interest rate swaps mis-selling, please contact
by telephone; 0161 829 2599 or email firstname.lastname@example.org