Leaked RBS staff letter confirms Treasury was scaremongering.

Yesterday, to coincide with the Prime Minister’s panicked visit to Scotland, a Treasury source released information to the BBC regarding RBS and Lloyds Bank. Besides the incredible sight of Westminster trying to interfere in company operations, the trouble with such interference is that the companies have to clarify the misinformation. This has forced the CEO of RBS to write a letter apologising to his staff for hearing the story in the media first and to explain categorically that they have no intention to move jobs or operations.

It makes the situation crystal clear.

Letter from Ross McEwan, RBS Chief Executive to staff

Dear colleagues We have today made a statement to the market (see below), providing information on our contingency planning in the event of a Yes vote in next week’s referendum on Scottish independence. As you will have seen over the last twenty four hours, other Scottish headquartered financial institutions have made public statements about their intentions. This served to fuel media speculation about our own plans, and in those circumstances, it became necessary for us to update the market on aspects of our contingency planning. It is my view as Chief Executive that any decision to move our registered headquarters should have no impact on everyday banking services used by our customers in Scotland and the rest of the British Isles. This is a technical procedure regarding the location of our registered head office. It is not an intention to move operations or jobs. Our current business in Scotland, including the personal and business bank, IT and operations, human resources and many other functions, are here because of the skills and knowledge of our people, and the sound business environment. So far, I see no reason why this would change should we implement our contingency plans. It is always my aim to ensure we inform our staff about such issues at the earliest opportunity. I know many of you will have already heard about this first in the media. My apologies for that, on this occasion this was unavoidable. Over the next week, and beyond, we will continue to update you whenever appropriate. Ross McEwan Chief Executive

Business for Scotland Comment

Ok so RBS are scenario planning, that means that if they need to they will re-register (a paper exercise) so that if they go bust again the Bank of England pick up the tab and not the Scottish people. There will be no job losses or operations transferred – not much of a scare story!

We believe there will be a currency union and that Scotland’s financial sector will thrive with independence and that even the paper exercise of re-registering will not be required.

As Martin Gilbert of Aberdeen Asset said today, “An independent Scotland would be a great success.” And Sir Angus Grossart, Chair of Edinburgh bank Nobel Grossart, who said that the referendum’s impact on market instability has been “severely overstated”. He continued “To hear some of the comments you almost expect people to be predicting a plague of locusts or mice next.”

Join Business for Scotland – Sign the business declaration