Break ’em up, bring ’em in

Three new  banks might emerge in the UK following the dismantling of Lloyds and RBS by selling some more of their assets.  The Guardian is reporting that Alistair Darling wishes to sell some of the banks’ assets in order to pay back the taxpayers, who are majority shareholders of both banks.

The new banks will be standard retail banks concentrating on deposits and mortgages and offering what ministers hope will be a better deal for the consumer with an invigorated mortgage market and more competition.

The new banks could include TSB – whose branches were taken over by Lloyds – and Williams & Glyn’s, owned by RBS. There may also be a new BankCo, described as the “good” portion of the completely state-owned Northern Rock. Minsters says the move will mean the dismantling of the established “monopoly” over retail banking held by the high-street giants – which include Barclays, Santander (owner of Abbey) and HSBC.

More from The Guardian.

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