LONDON, Aug 8 (Reuters) - Royal Bank of Scotland is shutting its turnaround unit ‘GRG’ and has appointed a new executive to lead the bank’s restructuring work, a person familiar with the situation said on Friday.
The person said that staff at the bailed out bank had been informed of the changes by email. Derek Sach, who heads up GRG, and Aubrey Adams, who leads its property division, will both leave the bank on March 31, staff were told.
Laura Barlow, who joined RBS in 2009, has been appointed to head up RBS’s new restructuring unit, which will be more integrated with the main bank than GRG was, said the source. Customers will not see any change, he added.
GRG swelled with loans at the height of the financial crisis, but has reduced in size dramatically as the economy improved and some assets were transferred into the newly-created RBS Capital Resolution (RCR) earlier this year.
In late 2013, UK government advisor Lawrence Tomlinson accused GRG of forcing the collapse of businesses so RBS could profit.
An independent review commissioned by RBS found no evidence that the bank had set out to defraud its business customers but RBS nonetheless announced that it would change some practices.
Reporting By Laura Noonan; Editing by Simon Jessop