Royal Bank of Scotland is set to wind down its Global Restructuring Group which is facing investigation over allegedly forcing small businesses into default to boost its own profits.
It is understood an internal communication was sent to employees today confirming that GRG head Derek Sach and head of property Aubrey Adams have both agreed to leave the bank at the end of March 2015.
GRG is set to be replaced by a new restructuring team working with RBS to help troubled clients instead of operating as a separate business.
Former GRG head Laura Barlow will lead the new team. RBS declined to comment.
Law firm Clifford Chance found no evidence for the allegations but an FCA investigation remains ongoing.
The allegations of misconduct by GLG first came to light in November when a report passed to Business Secretary Vince Cable claimed RBS put viable businesses into default so it could make more profit.
It claimed that despite GRG being set up to help struggling companies it actually imposed fines, hiked interest rates and withdrew loans. They claim RBS’ property arm West Register then bought their properties at a fraction of their value.