Page 26 - RBS GRG F Teaching Note

So! Why did the bank allow these actions against small and

medium sized businesses? The answer may to some extent

lie in the:

“Property Participation Fee Agreements (“PPFAs”)

had a double benefit for RBS. They were an

equitable instrument, and RBS was allowed to use

PPFAs as equitable holdings. This helped shore up

RBS’s rather below par holdings for the purposes

of regulatory requirements. It was the same as
holding stocks and shares in a company – it has a

monetary value. RBS was simply bleeding

customers dry in order to make money and to

create equities that it could hold as capital, fixing

two birds with one shot.” (6)

Below are key facts which relate to the size of the GRG: