The current publicity about RBS bank has struck a nerve.
Here is a press release which is going to the media this afternoon -
Multi-millionaire businessman Kevin Green today joined the growing clamour for action against banks who put the squeeze on small businesses.
“I am appalled and disgusted by the actions of RBS,” said Green, who runs a massive private property portfolio and other enterprises in a number of business sectors.
“Conversations with other businesses throughout Wales suggest that RBS isn’t the only culprit here.
“But they are, of course, the ones currently in the spotlight and receiving all the media attention.
“The treatment of SMEs (small and medium-sized enterprises) by RBS is nothing short of scandalous.
“Stories of the bank exploiting the small print in loan deals abound today. For example, one business I know missed a loan repayment one month and quickly found themselves heading down the road of default.
“The pressure put on customers by RBS is neither fair nor morally acceptable. The old joke about banks pulling away the umbrella the minute it starts to rain appears to be very true in today’s world.
“The RBS tactic seems to have been to put swift and heavy pressure on some SMEs to get them liquidated. Then, hey presto, the bank comes along and captures and uses the assets for its own purposes.
“It appears that RBS set up its own company called West Register to leverage the situation, taking on properties and assets from distressed lending situations to avoid selling them on the open market at knockdown prices.”
Mr Green added: “Earlier this year, I was the in vanguard of leading complaints against the Bank of Ireland for the underhand tactics the bank used in raising mortgage tracker rates.
“We’ve lurched from banking crisis to banking crisis in recent years and it seems we still hear the ‘same old’ story of banks seeking to exploit their privileged position.”
“Obviously, I welcome any investigation of RBS. But I would also urge the Government to do more to shine a light on the custom and practice of some of our banks.
“I work very closely with young business people as Big Ideas role model for the Welsh Government. You would like to be in a position to talk to young budding entrepreneurs and assure them that the world of banking is full of people with strong ethical standards and a strong moral compass. Sadly, you cannot do that in the current climate.”
