Page 221 - Bank Case Studies

Collusion

RBS faced allegations of

colluding with valuers as RBS

only used a valuer that
already has a relationship with

it. Alternatively, RBS often
used their in-house valuers. These valuations were almost

always below what an independent third-party valuation

would provide, hence why RBS used in-house valuers for

“desk-top” valuations. These estimated property values

during the financial crisis were based on how much they

would fetch not in an ordinary sale but in a fire sale, with a

short marketing window. (25)

“The alternative West Register PPFA involve West

Register taking shares in the business. Typically, RBS

would demand that A Preferential shares and B

Preferential shares be created by the victim in their

business. Those preferential shares would then be

given to West Register for £1.00. West Register then

has an option to value the shares and sell them to the
true owners at a pre-ordained date or event. This

would require up to 25% (potentially more) of the
company is given to West Register for no reason other

than undue commercial pressure by RBS.” (15)