High Street Banks To Be Broken Up

High Street Banks To Be Broken Up

by Ashley Clark, Director

Chancellor, Alistair Darling, has confirmed that publicly owned banks Lloyds Banking Group, RBS and Northern Rock are to be broken up again as the financial sector strengthens over the next three years

Lloyds Banking Group: Originally Lloyds and TSB and then having HBOS, i.e.  Halifax and Bank of Scotland thrust unto them last year (now 43% public owned)

RBS: Royal Bank of Scotland also including NatWest (now 70% public owned)

Northern Rock: The original ‘failed’ bank (now 100% public owned)

The Chancellor suggests that it is right, both under EU and UK competition law, to look at ensuring there is adequate competition in the Banking sector and this can only be done by there being enough, strong banks to compete for business.

An interesting mess given that Lloyds also owns Scottish Widows, whereas HBOS owned Clerical Medical and now they are all merging.  Will all of this have to be unravelled?

There is speculation that names such as Tesco and Virgin will be around to pick up the pieces.  Indeed, it was an epic lsaga ast year when Virgin was looking to buy Northern Rock from the Government but could not agree terms.  

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