Archive for November, 2016

RBS’s Global Restructuring Group: Options Available


The effects of the actions of GRG, now partially admitted by RBS, have been catastrophic and affected many lives in every sense.

We at Bell & Company have assisted many companies and more importantly many individuals who have come under the remit of GRG mainly since the 2008 crash. In our opinion the unit was not fit for purpose and was a ‘rudderless ship’ still reeling from the consequences of the crash and the disastrous management of RBS in the period 2000-2008.

This in turn lead to policies which defied logic along with short term decisions that were based on damage limitation with the use of the guise of ‘cost of capital to Bank’, breaching whatever covenant that was deemed to be relevant to GRG’s individual arguments, all with the misguided hope that situations could be resolved in the Bank’s short term dash for cash and profit at the real personal cost to customers in both monetary and health terms.

The apology and the provision of £400 million (£100 million of costs) to compensate those who have suffered here is a start, but we will see how that pans out. Too little too late is my initial opinion and how the scheme will work is vague to say the least. Bell & Company has seen at first hand the real cost of GRG & RBS’ actions here.

There have been many good people and businesses destroyed here in every sense. The real human cost is most concerning to this day some 8+ years after the crash. There are the obvious signs and examples of people’s financial ruin but we have seen firsthand the devastating effect of peoples’ personal lives and in many instances their health.

Devastating Consquences

There are instances of real physical health problems and a lot of mental health suffering, that cannot be under estimated and is ongoing. In nearly every instance all of the people we have seen and worked and work with are good people who made entrepreneurial decisions with the support and pressure from lenders ‘over keen’ to sell loans and lend on terms that would definitely not be seen as prudent.

Yes the financial loss is there for all to see but the Health loss and cost in all this is immeasurable. As a State owned body now, the politicians are strangely quiet on this, but maybe we should not be too surprised or disappointed by their inaction as they seem to be more embroiled in self publicity and social media status’.

We continue in our work for all clients who face financial woe in whatever form. Many of those affected by GRG and other such financial institutions have adopted the Legal challenge route and some will make representations to the RBS compensation scheme and we wish you well.

A word of warning though – deep pockets and patience on a long haul are needed. Our legal friends need focus on the real matters before them and Banks across the board will fight to protect themselves and in playground parlance ‘their dad is bigger than your dad’. They have very deep pockets and for those making the decisions, it is not their money.

Mediation in whatever form is often the very best way to put an end to such issues and it often helps people get on with their lives after years of suffering. Our legal friends are not always keen on this but resolution is needed for everyone here. It’s the ability to talk, without weakening a position, openly to determine what both parties reasonably want. Bell & Company act for hundreds of clients across Europe and can help and advise on your options even if you feel there is only one option, the path you are on.

Generally the Banks want to deal with the mess before them and were not individually involved in issuance of some of the crazy unsustainable lending, but they are human and have a job to do.


To conclude:


Good Luck and Keep Well

Read our previous coverage on RBS GRG by continuing below:





Business borrowings in personal name

Debt settlement

-A retail Client of ours had a debt settlement who was involved in an acrimonious breakdown with a local Bank regarding money he owed to them for which he was personally exposed.

-There was a shortfall of c£400,000 owed on his own home, further to a consensual sale negotiation involving an agreed third party and business debt of c£600k owing further to the consensual sale of several properties.

-His overall exposure then was in the region of £1m

-Further to advancing intellectual, detailed and supported argument and proposals to the Bank, we settled on a full & final basis with a monetary amount of £50,000.00

-This resulted then in savings of £950,000

RBS’s Global Restructuring Group Apologises

RBS’s Global Restructuring Group apologises to thousands of customers following pressure from the Financial Conduct Authority (FCA).

This is a two-part blog covering the events of RBS’s Global Restructuring Group (GRG) ‘misleading’ practices.

In this first release we will look at a brief time line of events and what lead to the public owned Bank to apologise. Next week our concluding blog will consider the practical implications and human cost of GRG’s actions over time.

RBS Failed Consumers

At long last after much coaxing RBS and their GRG Department of old have admitted to ‘failings’. Full-page adverts in the broadsheets with an apology from Ross McEwan the CEO at RBS sees them accepting that they failed “some SME customers”.

Up until the last month RBS totally denied any responsibility at all. Various investigations including an incredibility protracted one by the FCA (with a report still expected in the New Year), came to nothing.

I may be cynical but for only the recent exposure by BBC’s Newsnight, Buzzfeed and the excellent Andrew Verity, then this matter would have stayed on ‘the back burner’. Essentially RBS’s own emails found them referring to ‘dash for cash’ and ‘creating defaults’ and some of Lord Tomlinson’s findings and other aspects of RBS conduct are now being accepted as true.

So, a £400 million provision has been made and RBS is to compensate customers wronged by GRG, over time.  £100 million is being used to run and administer this provision/fund. However, all of this is too late.

People who have and had a valid case may pursue the Bank, but this will undoubtedly be a protracted process which RBS must be very careful in dealing with. Many cases will have passed in to some form of Insolvency and the awards may come from Liquidators and alike. If there is any form of ongoing litigation, then again difficulties will arise. These are just two examples of the challenges faced by claimants here.


A brief timeline of events:


Monumental Consequences

By way of perspective it is essential to remember that 8 years have passed since the crash, and still the new board at RBS are struggling with the consequences of the actions of those at the helm pre-2008. That shows how monumental this was and is – 8 Years!

The FCA has had a difficult task here in trying to tidy up the 2008 crash. That said their report on GRG is still awaited 3 years from its commencement.

So, that is where we find ourselves is this plotted history of GRG to date and surrounding events.

For Part Two Follow The Link Below:

Part 2

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