RBS Said to Start Shutting Restructuring Businesses in Europe
Royal Bank of Scotland Group Plc (RBS) is closing most of its European debt restructuring business outside the U.K. as the nation’s largest publicly owned lender winds down its global restructuring group, according to two people familiar with the matter.
RBS began shutting down units in Amsterdam, Madrid, Milan and Paris in September, said the people, who asked not to be identified because the plan is private.
James Abbott, a spokesman for RBS in London, declined to comment on the closures and the number of employees affected.
RBS is disbanding its restructuring operations as it disposes of unwanted assets and focuses on its U.K. business after receiving the world’s biggest bank bailout during the financial crisis. The global restructuring group came under the scrutiny of U.K. lawmakers last year after a government-commissioned report accused the bank of deliberately pushing viable companies into bankruptcy to boost profits.
RBS identified small businesses as distressed so it could charge them advisory fees and buy their assets at reduced prices, according to a November 2013 report by Lawrence Tomlinson, a government adviser. Law firm Clifford Chance LLP later found no evidence the companies were “artificially” distressed, according to a separate report commissioned by RBS published in April.
Derek Sach, global head of the restructuring division of RBS, will leave the bank at... Read More
Promontory Financial Group LLC, a consulting firm, and the accountant Mazars LLP have yet to publish their reviews commissioned by the U.K.’s Financial Conduct Authority in January.
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