RBS facing accusations of leading small firm to collapse

RBSThe RoyalBank of Scotland is facing new criticism that it might have forced some of the smaller firms in the country to collapse in order to acquire their assets at very low prices.

Businessman Lawrence Tomlinson, who is the entrepreneur in residence at the Department for Business, Innovation and Skills, has accused RBS of intentionally forcing some small firms to collapse in order to benefit from the opportunity of acquiring their assets at much lower prices. Mr Tomlinson wrote in a report that he has found evidence against the state-run bank.

The report that includes direct allegations against the RBS has been given to the watchdogs by Business Secretary Vince Cable. Mr Tomlinson has particularly blamed the Global Restructuring Group (GRG) of the bank, which is responsible for its turnaround. The division looks into handles loans classed as being risky and has the authority to scrap loan deals.

UK's Chancellor George Osborne has indicated that it is unlikely that the Royal Bank of Scotland will be re-privatised before the next general election in the UK. According to reports, the government might be planning to split the bank into separate entities before selling its stake. Officials have said that it is believed that the government might hold its 81 per cent stake in the banking group during the next parliament.