RBS shares fall on report showing bank pushed businesses into default

Royal Bank of Scotland PLC [s:rbs] shares have fallen, after reports of leaked documents that appear to show the bank pushed small-business customers into financial difficulties in pursuit of profit. The BBC and BuzzFeed UK reported Monday that the confidential documents show RBS rewarded staff who identified businesses that could have their loans restructured, bringing in heavy fees. The profit drive, called a “dash for cash” by bank managers, also looked for firms that could have their assets taken over or their interest rates increased. The bank “bought up assets cheaply from failing businesses it claimed to be helping,” according to the leaked files, the BBC said. RBS, which has repeatedly denied allegations that it harmed business customers in search of profit, told the BBC that a review had found no evidence that “the bank artificially distressed otherwise viable SME businesses or deliberately caused them to fail.” RBS shares fell 2.5% in early trading Monday. The bank did not immediately respond to a request for comment.

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