RBS share price: Lib Dem leader urges MPs to quiz group over turnaround unit

The leader of the Liberal Democrats has called for MPs to question Royal Bank of Scotland Group’s (LON:RBS) chief executive over his handling of the lender’s controversial turnaround unit. The news comes after Ross McEwan recently hit out at former business customers, accusing them of ‘badmouthing’ the bailed-out lender and making ‘false accusations’ about its controversial Global Restructuring Group (GRG).

RBS’ share price has drifted lower in London this morning, having given up 0.80 percent to 276.36p as of 08:26 GMT, underperforming the broader UK market, with the benchmark FTSE 100 index currently standing at 7,560.01 points, flat in percentage terms. The group’s shares have added just under 50 percent to their value over the past year, and are up by some 23 percent in the year-to-date.

Cable urges MPs to quiz RBS

The Times reported this morning that Sir Vince Cable had written to Nicky Morgan, chair of the Treasury select committee, asking her to summon RBS’ chief executive Ross McEwan to appear before the committee to explain how he thinks the bank was above ‘criticism for its failures’.

“Mr McEwan needs to be asked how he thought it was appropriate to say he was tired of people ‘badmouthing’ the bank when they have seen their lives ruined by its actions,” he said, as quoted by the newspaper.  He has also written to RBS chair Howard Davies, suggesting that £400 million for the GRG victims was ‘inadequate’.

A spokesman for the bailed-out lender told The Times that the group awaited “the letter from Vince Cable and will respond in due course”.

Analysts on RBS

Berenberg, which sees the part government-owned lender as a ‘buy,’ boosted its price target on the stock from 275p to 300p last week. According to MarketBeat, RBS currently has a consensus ‘hold’ rating and an average price target of 265.82p. 

As of 08:42 GMT, Monday, 06 November, Royal Bank of Scotland Group share price is 276.20p.