Ulster Bank "loan scandal"

[Early Riser]

Articles in the London Times both both this week and last week refer to "secret" activities by Ulster Bank going back over several years that have adversely impacted on customers on each side of the border in Ireland. Fraud is alleged. I have never been an a customer of this bank and I don't really understand what is alleged to have happened. But as it seems to ongoing it might be of interest here:

"Last week, The Times revealed that Ian Tyler, a former group head of capital at Royal Bank of Scotland, had reported concerns to the City regulator about an alleged lending scandal at Ulster Bank, a subsidiary of Tyler’s former employer, now called NatWest. Tyler, an expert in bank finances, claimed that Ulster Bank had lodged enormous “hidden” liabilities against the names of small business customers in both Northern Ireland and the Republic of Ireland, with “awful” consequences for livelihoods. MPs are calling for an inquiry."

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[Brendan Burgess]

Hi Early Riser

I had read that article.

It is alleging that customers of Ulster Bank who fixed their interest rate also entered unwittingly into a swap agreement. It sounds like nonsense and Ulster Bank has denied it. I think if someone entered into a swap, they would know.

What I think happened is that Ulster Bank entered into a swap agreement when they gave out the fixed rate and this was a matter between Ulster Bank and their counterparty, but it had no impact on the borrower. However, it seems that some of the documentation was wrong and Ulster Bank may have presented it incorrectly in their accounts.

Brendan

 

[Brendan Burgess]

Separately from this, and it has been known about for years, was the scandal of the Global Restructuring Group within Ulster Bank.

I can't remember the details - I think that they were alleged to have piled on charges on cases which were already struggling.

RBS's Ulster Bank refunds GRG fees in Ireland

Ireland's Ulster Bank, part of the RBS group, has said it will refund fees to 17 SMEs that were overcharged as customers of its GRG turnaround unit.

www.leasinglife.com

But it's not news.

Brendan