Good Old RBS...
As we are all now aware, Ulster Bank are for all intents and purposes closing their GRG Resolutions group. This means that borrowers have been told to either re-bank or re-finance their loans or face the pleasures of recovery.
What happens if you can't escape from GRG?
You will be glad to know that RBS have come up with an innovative solution. Not only have they agreed to sell your loan to the American Vulture funds but as of this week RBS are now funding by way of Debt the purchase of the very loans that they are selling. Yes, what you read is correct.
On news wires this week it became apparent that RBS have funded Senior debt for a Company called Kennedy Wilson. Kennedy Wilson are the company who have bought loans and properties from Bank of Ireland from their distressed loan book. They are what's known as an American Vulture fund.
Can you believe that RBS, the parent of Ulster Bank, who are closing property lending, are now funding Vulture Funds with senior debt to acquire these loan books and/or to refinance?
You couldn't make this up...
How disappointing it is that the tax payer yet again is being caught with the losses that have been sustained by RBS and Ulster Bank as a whole on property loans, while at the same time, RBS are funding the very Vulture funds that are acquiring these loans?
If you were not aware of this you are now - so let your representatives know across the board that this is the kind of activity that a state owned Bank is doing.
Watch this space and as ever we will keep an eye on the innovative ways that these Bankers are generating fees and returning their businesses to profit.