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Nicky Morgan demands publication of report on RBS's controversial restructuring arm

Nicky Morgan, the chair of the Treasury committee, has demanded the Citys watchdog, the Financial Conduct Authority (FCA), release its full report into RBSs controversial restructuring arm.
The report was leaked to the BBC last month and revealed 92pc of viable firms that entered the taxpayer-owned banks Global Restructuring Group (GRG) were mistreated in some way, such as facing inappropriate interest charges or fees.
Only one in ten ever made it back to the main bank, the broadcaster reported.
More than 12,000 companies were transferred into GRG between 2007 and 2012. It has been accused of helping push firms under in order to takeover their assets more easily.
Nicky Morgan demands publication of report on RBS's controversial restructuring arm

Nicky Morgan

Credit:
Andrew Matthews/PA Wire
RBS which is facing a lawsuit from some of the businesses affected has said the FCA made it clear the small companies transferred to GRG were exhibiting clear signs of financial difficulty and that in a significant majority of cases, it was likely RBSs actions did not result in material financial distress.
The FCA has so far refused to publish the full study, first commissioned nearly four years ago.
Ms Morgan has written to FCA chief executive Andrew Bailey demanding full publication.
She said: The FCA told the committee in November 2016 that a full account of the findings would be published. Nearly a year later, and nearly four years since the report was commissioned, we are still waiting for answers.
The balance has tipped firmly in favour of full publication. I have written to Mr Bailey to urge him to secure the approval of RBS to do so, without delay.
A spokesperson for the FCA said:We have received the TSCs letter and will respond in due course. We have already initiated a leak inquiry into the disclosure of the s166 report on RBS GRG to the BBC, and we have asked the other parties who had access to the report, namely RBS and Promontory, to do the same.
"If the Treasury Select Committee or the BBC have evidence that the document was leaked by the FCA, we encourage them to share that with us."
RBS declined to comment.
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