Lloyds bank, Royal Bank of Scotland and Northern Rock to be broken up
The UK government has let it be known within city circles that Lloyds bank, Royal Bank of Scotland and Northern Rock will all be broken up and sold off in due course, as the UK government looks to increase competition in the sector and alleviate the potential problem of overdependence on a small group of banks in the future.
While it is too early to suggest any potential takeout price for the three banking operations, when you consider that over £1.2 trillion has been poured into the UK financial sector, very soon taxpayers will want to see a return on their investment. It would appear that Northern Rock will be the first state-owned bank to be split up and sold off with a number of parties said to be interested, although Virgin Money is rumoured to be the front runner at the moment.
Even if the UK government is successful in breaking up the three banks in question there are many who fear that in due course we will see further consolidation in the sector, possibly a decade or more done down the line, and a return to the small league of powerful UK banks.
Share this..
Related stories
Alistair Darling admits he got it wrong
Alistair Darling has this evening paved the way for a significant change in economic predictions supplied by the UK Treasury. In a move which had been fully expected by opposition parties, Alistair Darling has apologised for errors and misjudgements over the last few months which have seen economic forecasts cast into the bin.
The admission by Alistair Darling that the recession is...
Savers still unable to access Pension Wise guidance
23/03/2015 Savers are still unable to access free, face to face guidance from the Pensions Wise service, experts have warned. With only a few weeks left before the new pension regulations come into place, many retirees have been unable to access the impartial advice sessions they offer. The phone line to book face to face sessions from Pensions Wise has not yet been opened, and many savers...
Read MoreZero hours contacts increase
02/09/2015 The amount of UK businesses offering zero hour contracts has increased by 6% over the last year, according to official figures. Data from the Office for National Statistics has shown that there were 1.5 million people employed on zero hour contracts in January this year, which is an increase on the 1.4 million in January 2014. The data is the first collected on zero hour contract...
Read MoreRyanair pulls out of deal with Boeing
Budget airline Ryanair has today revealed it has pulled out of talks with aircraft giant Boeing after the pair were in discussions about a potential 200 aircraft order. While the company has suggested talks ended because the pricing or contractual terms conditions were not to its liking, it is common knowledge that the UK industry is struggling and literally every penny will count in the weeks and...
Read MoreCharity begins at home
Since the beginning of the ongoing recession, donations to UK charities have collapsed and the UK government, often a supporter of good causes, has also left the sinking ship. The sector is now very much smaller than it was at the start of the recession and even though many of the larger charities appear to be coping well, there have been significant hits across the board. So what next?