This week saw the Tomlinson Report debated in the House of Commons. The report from Vince Cable’s entrepreneur-in-residence has sparked allegations of ‘systematic fraud’ and drawn the attention of the Serious Fraud Office.
The debate led by Guto Bebb looked to address:
- The report’s findings in relation to whether the bank deliberately attempted to engineer situations in which businesses defaulted or breached their banking covenants.
- The nature of the support that businesses receive once subjected to the support structure of the GRG.
In introducing this issue Bebb asked “Is it really trying to get businesses back on track, or—as in many cases that I have seen, and in many cases highlighted by Lawrence Tomlinson—are businesses subject to unfair and penal rates of interest and
charges, and often asked to pay for reports and valuations that are almost never in the businesses’ interests?”
- The impartiality of the whole insolvency process
Natascha Engel MP for North East Derbyshire said that “The Tomlinson report gives us an insight into behaviour that, if it is not systematic fraud, certainly reflects a culture and set of practices in the banking sector that are shocking in the eyes of most
right-minded people. Small and medium-sized businesses are already struggling in a difficult business climate; to find that the very institutions that are supposed to help them through that difficult time are using practices that make their situation even
more difficult—and often force them into insolvency —is truly shocking.”
Berg are supporting over 200 businesses who have been affected by interest rate swap mis-selling and/or GRG & West Register and we are encouraging businesses and individuals to get in touch.
Managing partner Alison Loveday spoke to BBC News about the impact on businesses and the issues the report has raised.
View the BBC News interview here.
If you have concerns about interest rate hedging products or GRG and would like to speak to one of our banking and financial regulation team please email firstname.lastname@example.org or call 0845 548 5543