Royal Bank Of Scotland (LSE:RBS)
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1 Year : From Jul 2018 to Jul 2019
By Adam Clark
Royal Bank of Scotland Group PLC's (RBS.LN) Chief Executive Ross McEwan has been criticized by a U.K. parliamentary committee for withholding information over claims of criminal activity within the bank.
When giving evidence to the Treasury Committee in January, Mr. McEwan said that he wasn't aware of any allegations of criminal activity at RBS. The Times of London newspaper subsequently reported in July that police in Scotland were investigating a former employee of RBS's controversial Global Restructuring Group (GRG).
In a letter to the committee written in August, Mr. McEwan said the bank would "entirely reject" the suggestion that his previous evidence misled the committee. He said the police investigation didn't relate to the activities of the GRG unit between 2008 and 2013, which were the subject of the hearing. The GRG unit has been accused of squeezing small businesses for cash, when it was meant to be helping them restructure.
The chair of the Treasury committee, Nicky Morgan, said in a statement released on Friday that it was "unconvinced" by Mr. McEwan's explanation.
"When asked in January if he was aware of any criminal activity at GRG, Mr. McEwan withheld information of relevance and interest to the committee," Ms. Morgan said.
"The committee is concerned by the pattern of defensiveness, and a failure to acknowledge mistakes, demonstrated by RBS throughout its handling of the GRG affair. Mr McEwan's letter to me is an example of this, and it casts doubt on his assurances that RBS's culture has changed fundamentally since he took up his position five years ago," Ms. Morgan added.
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(END) Dow Jones Newswires
September 14, 2018 11:48 ET (15:48 GMT)
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