Royal Bank of Scotland Group Plc named Laura Barlow head of its restructuring operations, according to a person with knowledge of the matter, as the lender scales back a unit that has been criticized by lawmakers.
Derek Sach, head of the global restructuring unit, will leave on March 31 along with Aubrey Adams, head of property for the division, said the person, who asked not to be identified because the moves haven’t been made public. Barlow is a former head of U.K. restructuring at the unit.
The restructuring group has been attacked by lawmakers after a report by Lawrence Tomlinson, a government adviser, found it pushed viable companies that had borrowed money into bankruptcy to boost the bank’s profit. RBS Deputy Chief Executive Officer Chris Sullivan and Sach both denied the allegation when they gave evidence to lawmakers in June.
RBS, 80 percent owned by the taxpayer after receiving the biggest bank bailout in the world, created an internal bad bank in 2013 to sell its worst-performing assets. It’s moving many of GRG’s assets into that unit, the person said.
Barlow, Sach and Adams didn’t respond to e-mails seeking comment. A representative of RBS declined to comment on the moves. The Wall Street Journal reported the lender’s plans earlier today.