Lloyds Banking, RBS pay Brussels bill |
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| Economy | |
| Written by Gary Howes | |
| Friday, 22 January 2010 | |
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The cost of restructuring must ultimately fall under the banks themselves.
Lloyds Banking Group (LON:LLOY) and RBS (LON:RBS) are both set to pick up the tab deriving from the European Commission's recent directives on bank competition. The two banks have set about advertising for posts established to oversee the implementation of the changes Brussels requires. The positions are being advertised as 'monitoring trustees.' A Times editorial suggests that the successful candidates would be placed in a very awkward position and ask tough questions of their employers. "This is to ensure they dismember themselves correctly while remaining hobbled in one of the most competitive markets on earth," writes Martin Waller in his City Diary column. The monitoring trustee at RBS will have to oversee the dismemberment of insurance arms Churchill and Direct Line. RBS will also have to lose its RBS branches in England and its NatWest branches in Scotland. Lloyds Banking Group is reportedly set to sell off its TSB brand and various branches - this could include a combination of Halifax, Lloyds TSB and Bank of Scotland Branches. Having spoken to a Lloyds TSB business consultant I can reveal that Lloyds Banking Group have already implemented an informal policy whereby all prospective new business customers are channelled from Halifax and Bank of Scotland branches into their closest branch of Lloyds TSB. Lloyds Banking Group shares are higher by 1.67% this morning while RBS shares are 2.35% lower.
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