Page 226 - Bank Case Studies

“Yes, we do business with all the large corporate

lawyers." Then the MPs wanted to know how many

drafts of the report had been submitted to RBS

before it was published, and whether they had

been interfered with. “I have no idea,” said

Sullivan. “I never saw a single draft.” That was an

answer that would come back to haunt him. (25)

Next, the MPs cut to heart of GRG’s practices. “You

have been with GRG for a long time, Mr Sach,” said
John Mann. “How much has it contributed to the

bank’s profits?”

Sach’s answer was unequivocal: “It does not

contribute to the bank’s profits at all,” he said.

“Our main objective is to restore the customers’

health and strength.” Sullivan backed him up. “It is

absolutely not a profit centre,” he said, adding that

it would be “totally inappropriate” to describe it as

such.

The MPs were incredulous, pointing out the

finding in the Large report that GRG operated as

an “internal profit centre”. Digging in, the two

executives ventured that the former deputy

governor of the Bank of England had been

mistaken.

“So he just got it wrong?” asked Tyrie.

“I believe so, yes,” said Sach.”