At Renegade Inc. we don’t take kindly to bankers who prey on small/medium sized businesses. Royal Bank of Scotland CEO Ross McEwan and Chairman Sir Howard Davies are apologists for arguably the biggest corporate heist in UK history.

Illustration Rachel Bolton

Watching this double act in front of the Treasury Committee on 30 January 2018 was unedifying. To the untrained eye, there were two stuffed suits answering detailed questions about another banking scandal. To the shrewd viewer, there were two corporate types who’d been on the receiving end of hours and hours of legal coaching to defend the indefensible.

The directive was clear: keep telling the committee and the wider world that the Royal Bank of Scotland (RBS) have set up a complaints procedure and people who feel wronged should use it. Translated: possession is nine-tenths of the law – we own the process – we make the rules. Good luck to any individual case needing redress. We’ve even got a retired high court judge to preside – what more do you want?

Using legal firepower is the best strategy these two – and their lawyers – can come up with. In fact, it’s the only strategy now available to them.

Parasitical treachery 

So why does all this matter so much? You might think it’s because RBS is majority owned by the British taxpayer but there’s more to it. RBS is an organisation that has been actively undermining the UK economy – for its own gain – for years.

RBS is an organisation that has been actively undermining the UK economy – for its own gain – for years.

Within the bank, there was a division called Global Restructuring Group (GRG) that was meant to turn comprised businesses (who were customers of RBS) around. That was the marketing – the reality was different. GRG became the cash cow of the RBS group by assuming the role of a predatory asset stripper. GRG staff – like all bullies – didn’t go after businesses that could put up a fight they parasitically pursued businesses that are the lifeblood of the UK economy: small to medium-sized enterprises.

Shooting Koi Carp in a barrel…

Small to medium-sized enterprises (SME) were easy pickings – especially ones with hard assets like real estate. If you have the power to engineer an interest rate rise on a loan that cannot be met real estate can be repossessed. Prior to repossession if you can get a third party to undervalue the asset you buy it a knockdown price. This, basically, was their business model. How else can you become a cash cow when banking is a cost centre for all businesses and wider society?

So, like with all corporate psychopathy, if something works you rinse and repeat  – literally. The number of SME’s that have been rinsed by GRG is staggering. The number of jobs lost is astonishing. The number of families smashed apart is inexcusable. The financial cost is in the billions. The associated suicides are criminal. All for what? All so vampiric bankers could ‘just hit budget’ and release their bonuses.

The problem with all that legal coaching is that McEwan and Davies stuck doggedly to defending a narrowly defined brief. This became an issue when they were quizzed on the wider aspects of the RBS business and were found wanting. If a CEO can’t give you a detailed description of the history of the company he presides over or name the values it stands for – he should ‘do the right thing’ and go. If the Chairman defends him – he should go too.

Hardly ‘do the right thing’: Ross McEwan promoted the former Head of GRG Laura Barlow to Head of RBS re-structuring. We’re curious as to why he defends her so vigorously.

“So what – that’s the game”

McEwan is a CEO for our time – cynical, bullying, self-centered and incapable of real service. The long-suffering public are so used to this character they shrug and conclude “so what – that’s the game”. Davies’ checkered past (Gadhafi cash for credentials at the LSE) only serves to confirm most people’s view of the corporate class. But for the sake of our economy and the livelihoods associated the ‘so what’ is misplaced and no, that is not the game.

Sir Howard Davies confirming the modern corporate stereotype – well paid but unaccountable.

These people who plunder – without recourse to justice – need to be brought to heel. The rentier capitalism the public endures must be countered with independent regulators who have the national – not the corporate interest – in mind. A damning indictment of the toothless British organisations like the Financial Conduct Authority is that it’s now likely that foreign – not British regulators – will bring RBS to book.

Epitaph

RBS has killed confidence in the UK SME sector.  Today – in a post GRG world – when surveyed only nine percent of SME’s would consider going to a bank for lending. Of that percentage, only a third will get any capital. The fallout from this corporate heist is immeasurable and it’s the British people who wear the cost whilst the British taxpayer foots the bill.

The fallout from this corporate heist is immeasurable and it’s the British people who wear the cost whilst the British taxpayer foots the bill.

When straight talking John Mann MP put to McEwan that one of the founders of his business had the words ‘exact integrity’ written on his memorial stone McEwan was at a total loss. Not only did he not know who Thomas Smith was but his demeanor was that of a man who clearly didn’t care a jot about quaint yesteryear business principles like precision and truth. Provided he doesn’t bank with RBS McEwan’s stonemason will have an easy day at the office: RBS & GRG. What an epitaph.

Renegade Inc

Renegade Inc

Renegade Inc. is a new mainstream media platform which creates and broadcasts content aimed at those who think differently.Its mission is to inform, illuminate and inspire, focusing initially on three sectors: entrepreneurship, self-learning and the arts.
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4 thoughts on “RBS v The People. Yes, that’s you…

  1. I have documents that show Ross lying to the Chancellor and the Rbs Executive team telling the Chancellors office not to speak to me in big red letters

  2. Watching these two patsys taking the set piece facts to trash the remaining credibility. Right now seeking a final takeover bonus after failing in their jobs, failing to recruit a competent Board, failing to not be blackmailed , cowed and overstressed by the lethal lawyers of the GRG unit and Corporate Psychopaths promoted in the mould of Fred Goodwin ex CEO. The 300 bonus takers that are the real power behind the Boards throne.
    Only one critical Board attendee to remove the log jam and who has caused this by her board agendas and minutes – The Company Secretary and spider in the web Mrs Aileen Taylor. Someone that would be very good for the Treasury Select Committee to interview under oath.

  3. On 18 January 2018, a Parliamentary backbench motion on RBS’s Global Restructuring Group’s (GRG) systemic failure to protect SMEs received unanimous Ministerial support in condemning the bank’s parasitic relationship and systematic asset stripping of the British business sector. The debate provided further evidence of widespread endemic malpractice leading to accusations that Lloyds and RBS’s turnaround divisions committed the “largest theft anywhere, ever.

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