THE controversial Global Restructuring Group (GRG) was the RBS turnaround unit which had been set up in the 1990s as Specialised Lending Services, but which came to prominence after the 2008 global financial meltdown.
Businesses facing financial difficulties – mostly SMEs – were referred to the GRG which tied many to aggressively-sold and stringently-controlled loans as part of their rescue package.
RBS faced allegations that struggling businesses saw the unit seize their assets and sell them off at discount prices, despite some not defaulting on loan repayments.
READ MORE: Light at end of tunnel for victims of controversial RBS restructuring arm
Bank bosses could increase their bonuses by identifying business customers who could be squeezed in what was described in a bank email as “Project dash for cash”.
Stories abound of clients facing such treatment and some losing all the income they had put aside for retirement as well as their businesses.
One victim was Dumfries and Galloway Tory MP Alister Jack, who told MPs in the Commons last year that despite his company making profit, the bank tried to tell him he was in breach of finance agreements.
He said: “The plan was to seize assets through perceived default. Between 2007 and 2012 more than 15,000 companies were moved into GRG to await their fate, and I have no doubt many of those customers were not treated with proper care and attention.”
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