by Laura Gibb
The speculation surrounding whether the Royal Bank of Scotland, Lloyds TSB and Northern Rock will be broken up and parts of them sold to new entrants to the banking section seems to be exactly that; speculation. Mark Elliot, senior press manager for Halifax , was very reluctant to comment but what he did emphasize was that, “it’s all speculation that has come from other sources”. When asked if he could comment on what or who these sources could be, he yet again had nothing to say.
With no iron clad statements releasing any information it is hard for anyone to know exactly what might happen. When speaking to the Royal Bank of Scotlands press office, they again had absolutely nothing to say on he subject, so it seems all the banks in question are being quite close- mouthed.
Regardless of these talks, the FSA and the Chancellor of Exchequer, Alistair Darling, have been very open with their plans and wishes to reform the financial sector. The FSA have said they will begin regulating banks contact with their customers to try and amend the mistakes that were made by certain banking groups before and during the recession. A new framework will deliver a better service to consumers which in turn will begin to improve business overall.
The Chancellor states, when talking about the financial reform in his 2009 statement ‘Reforming Financial Markets’, “…the FSA will ensure that we maintain competition in the market for financial services – as we come out of this downturn we need to promote a competitive market than enables new entrants, which may include non-banking institutions, and innovation to benefit consumers and businesses.”
It will be interesting to see if any new statements arise regarding the bank splits but for now all we have to go by are general discussions and conjecture.