The largest UK banks are warning regulators against forced breakups as the Competition and Markets Authority is expected to decide Thursday whether to launch an investigation into the sector.
Reports say the CMA may consider forcing the UK’s largest banks to split up as it looks for ways to boost competition in the market that is controlled by just four players: Barclays, HSBC, Lloyds and RBS. Together, the four hold about 77 percent of the personal account industry, and 85 percent of the small business account industry.
The CMA will decide Thursday whether to move forward with a 18-month investigation into the banking sector. In addition to the dominance of the Big Four, the CMA is concerned over certain business practices, including the banks’ tying of bank accounts to small business loans.
But the Big Four are warning regulators that a forced breakup of their businesses will be costly. RBS chief executive Ross McEwan told reporters that the process is “as complicated as you’ll ever find it, which is why I think people who chat about breaking up banks and distributing them all over the place should have a chat to us at some point in time about just how difficult these things are.”
Similarly, Lloyds head António Horta Osório highlighted the nearly $3 billion it cost to break up TSB.
Full content: The Guardian
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Google and South Carolina Clash Over State Records Demand
May 8, 2024 by
CPI
Telefonica Germany Teams Up with Amazon Web Services to Migrate 5G Customers
May 8, 2024 by
CPI
Federal Judge Grants $7.4 Million Settlement in Pork Price-Fixing Case
May 8, 2024 by
CPI
Wilson Sonsini Bolsters Antitrust and Competition Practice with Key Partner Returns
May 8, 2024 by
CPI
EU to Scrutinize Telecom Italia’s Network Sale to KKR
May 8, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI