Are Lloyds Bank and Royal Bank of Scotland competing on a level playing field?
Today's news that the UK government is looking to push through significant bank branch selloffs by Lloyds bank and Royal Bank of Scotland in the short to medium term would appear to have been done in the name of competition, but surely Lloyds bank and Royal Bank of Scotland are not competing on a level playing field?
The truth is that the likes of Barclays bank, HSBC, Abbey and other well-known UK institutions will be rubbing their hands at the thought of Lloyds bank and Royal Bank of Scotland having to downsize their operations. Despite the fact that the UK government and the EU commission would like the sector as a whole to downsize this appears highly unlikely as potential interference with the likes of Barclays bank, HSBC and Abbey, to name but a few, would likely infuriate investors and attract legal action.
While there is no way the above three banks, or any other major players in the UK market, would be able to acquire any of the branches being put up for sale they must surely be able to benefit from the confusion as a new player or players enter the market?
Is the UK government making a major mistake by reducing the power of Lloyds bank and Royal Bank of Scotland?
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