A PYMNTS Company

EU: Commission missed the mark on banks during financial crisis, says study

By  |  May 9, 2013

A new study released from the University of East Anglia claims that the European Commission did not focus enough on the competitive health of the banking sector during the financial crisis from 2007 to 2010. The study, which has been published in the Journal of Industry, Competition and Trade, finds that the regulator failed to pay enough attention to the negative effects of market concentration due to subsidized mergers during the financial crisis. Specifically, the study points to effects of the merger between Lloyds TSB and HBOS; Lloyds received today’s equivalent of $31 billion in state aid back in 2009 after the merger, but was ordered by the Commission to divest 632 of its branches. Just last month, however, Co-op pulled out of its agreement to buy those branches. The study additionally suggests that state aid given to banks during the time period was excessive.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Full Content: Science Daily

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.