City of London Police to launch probe against RBS

RBSBesides the recently launchedSerious Fraud Office's inquiry, the state-run Royal Bank of Scotland will also face an investigation by City of London Police over allegations that it forced small businesses to collapse in order to acquire assets at lower prices.

TheSerious Fraud office has said that it is considering launching a criminal investigation against the state-run Royal Bank of Scotland following allegations that it forced small businesses to collapse in order to acquire their assets at low values. The Serious Fraud Office will review the bank's treatment of its business customers and will look to gather evidence RBS systematically defrauded companies by forcing them out of business.

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 evidence has been presented to the ministers against the banking giant.

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.