RBS could claw back bonuses from turnaround division

RBS’s global restructuring group has been accused of putting good companies out of business
RBS’s global restructuring group has been accused of putting good companies out of business
MARY TURNER/THE TIMES

Royal Bank of Scotland could claw back millions of pounds in bonuses from staff working for its controversial turnaround unit after it was revealed that the bank has set aside £17 million in pay awards.

The taxpayer-backed lender has handed the bonuses to 1,500 employees in its global restructuring group (GRG), but much of the money is being held back pending an investigation by Britain’s financial regulator into allegations that the unit put good companies out of business to boost the bank’s profits.

A source with knowledge of the situation said that a “large chunk” of the bonuses had been deferred and was being held by RBS in advance of the publication of the Financial Conduct Authority report into GRG. If this report were to