LONDON: Royal Bank of Scotland is shutting its controversial turnaround division and the two most senior executives who ran it are to leave the bank, a person familiar with the situation said yesterday.
Tasked with recovering loans from customers struggling to pay, the global restructuring group came under fire last year when UK government advisor Lawrence Tomlinson accused the division of pushing small businesses to collapse and then profiting from their demise.
An independent report commissioned by RBS, which is 81 percent owned by the government, cleared the bank of attempting to defraud its customers. But RBS nonetheless said it would change the way it dealt with borrowers in distress and outlined new practices.
Staff were informed of the restructuring group’s closure by email on Friday, the source said. The email also said that Derek Sach, who heads the division, and Aubrey Adams, who leads its property division, will both leave the bank on March 31, 2015.