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Here’s the Latest from the Royal Bank of Crooks

Here’s the Latest from the Royal Bank of Crooks

Here’s the Latest from the Royal Bank of Crooks

The Royal Bank of Scotland, a huge lender to small- and medium-sized businesses in the U.K. and Europe, is being accused of undermining the businesses it lends to.

Not that this would ever happen in the United States…

Apparently, the too-big-to-fail British bank further stresses borrowers by layering on fees when businesses can least afford them. This can trigger covenants that allow the bank to actually dismantle the borrower, to the benefit of advisors who have less than an arm’s length relationship with the bank.

According to Sir Andrew Large – he’s a former Deputy Governor of the Bank of England who was commissioned by Sir Philip Hampton chairman of RBS to review the bank’s lending to small and medium businesses – “The accusations mainly stem from a perceived conflict of interest, whereby RBS may profit from working against the best interests of financially distressed customers.”

Sir Andrew’s report was delivered to RBS today. And it’s been made public.

Here’s why you need to pay attention to this…

RBS is 81% taxpayer-owned, after it had to be bailed out during the 2008 financial crisis.

It has been shoving problem loans made to small and medium businesses over to its Global Restructuring Group (GRG).

But rather than help restructure loans to companies in some trouble, the GRG apparently jacks up fees to the troubled borrowers, stressing them further. In some cases, it hires “advisers” to assess what risk the troubled businesses pose to the bank’s loan portfolio.

In a move American banks would never conceive of, because they already created credit-default-swaps to do the same thing at more of an arm’s length, the GRG has dismembered businesses it ends up controlling by means of loan covenants desperate customers agree to, and has sold parts and business assets to the same “advisers” it hires.

Back in May, Lawrence Tomlinson, a Yorkshire businessman appointed as “entrepreneur in residence” at the Department for Business, Innovation and Skills, complained to the department’s boss Vince cable that his own problems dealing with RBS were widespread and deserved review.

Business Secretary Cable described the allegations as “very serious” and said he was “appalled.” He referred Mr. Tomlinson’s findings to the Financial Conduct Authority, the Prudential Regulation Authority, and City regulators. As a result of Tomlinson’s complaints, RBS initiated its own internal investigation.

And now we know.

Stressing business borrowers by hammering them with more fees, like overdraft fees, when they can least afford it, and driving them over a cliff whereby lender-protective covenants get triggered and let the bank dismember businesses and sell their parts to favored clients and associates… this is just another manifestation of too-big-to-ever-trust.

I’ve said it before and I’ll say it again, and I’ll keep saying it –

These big banks are criminal enterprises.

Forget RICO and Sarbanes-Oxley or any law that pertains to criminal activity, because obviously the eyes of justice aren’t blindfolded.

They’ve been gouged out by the Masters of the Universe.

Courtesy: Shah

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