Page 240 - Bank Case Studies

In a letter to the committee’s chairman McEwan said of the

internal memo: “At no time did it form part of GRG or RBS
policy.” Moreover, “The culture, structure and way RBS

operates has changed fundamentally since the period.” (23)

The papers also included a

16-page guide called

"ways to generate
income". Top of the list is

the suggestion that clients,

SMEs who had been put

into the GRG because of

financial troubles, be charged around 10 per cent of the

debt owed in the full knowledge they could not usually pay.

(23)

“It also includes a guide on exit fees - "Consider

ratcheting. Useful for property developments" -

and margin enhancement - "as per bank matrix

unless/until you agree an upside. Claim the margin

until all limits formalised"”. (23,24)

McEwan distanced RBS as a whole from the document,

saying "it was written in 2009 by a junior manager who is no

longer employed by the bank.” (24) Moreover, he said the

document had been

"identified by the bank and brought to the

attention of the FCA and the skilled person during
the review".

However, the Treasury Select Committee said: