Page 13 - RBS GRG F Case Study

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)