Royal Bank of Scotland: Small Businesses

Lord Davies of Oldham Excerpts

Tuesday 15th November 2016 Lords Chamber

[Lord Young of Cookham]

I endorse what the noble Baroness has just said about whistleblowers who put their careers at risk in order to bring malpractice into the public domain. It is not just the fees that are going to be compensated; direct losses will also be eligible for compensation, as will consequential losses where these are directly attributable to the actions of RBS. Established legal principles will be used to determine whether a consequential loss is factually and legally attributable to it. So it is not just the fees; it is direct losses as a result.

[Lord Davies of Oldham (Lab)]

My Lords, the Minister will recognise that the bank was bailed out by the taxpayer. Its malfeasances over the last few years—which have led to a very significant drop in its share price—mean that taxpayers are facing a very raw deal if they have to restore the bank fully at some stage in the future. The Minister must appreciate that, even in this latest examination of the issues which he has identified today, there are anxieties that market-sensitive information was leaked. Has the nation not had enough of really poor behaviour by this bank which necessitates more forthright action?

[Lord Young of Cookham]

The review covers the period 2008 to 2013, so I am not sure whether the point about malfeasances by the bank is particularly for one of the parties in this House. It is the Government’s intention, in due course, to return RBS to the private sector. That is not immediately practicable at the moment —the issue of Williams & Glyn has not been resolved and there are outstanding legal issues in the United States—but we hope to return the bank to the private sector in due course.

I am not sure to what the noble Lord is referring in his point about leaks. In a letter to the Treasury Select Committee, Tom Scholar has firmly refuted any evidence of inappropriate behaviour by the Treasury. If the noble Lord is referring to action by RBS, that is a matter for RBS.