Lloyds attacks Vickers and stresses role of IFAs in helping competition
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Source: Newscast/David Parry
Lloyds Banking Group has hit out at the Independent Commission on Banking’s call for Lloyds to sell off more assets, claiming it is based on “limited evidence”.
Earlier this week, the ICB published its interim report on reforming the banking system which called for an number of measures including ring-fencing retail banks and increasing capital adequacy levels above those agreed through Basel III.
The commission, led by Sir John Vickers, says Lloyds Banking Group’s sale of 600 branches, required by the European Commission under Project Verde as a response to the state bailout package that took place after the bank took over HBOS in September 2008, should be “enhanced substantially”.
The commission argues that more Lloyds assets should be sold, either to an existing small player or to a new banking entrant.
Lloyds Banking Group chief executive António Horta-Osório (pictured) says this would not be in the best interest of Lloyds customers.
He says: “We are surprised that the interim report is proposing a potential expansion of Project Verde which we believe is not in the interest of our customers. This option appears to be based on limited evidence and may paradoxically potentially delay a new competitor coming into the UK market.”
Lloyds says the UK retail banking market is competitive and the Commission should now “seriously consider the importance of IFAs and of the internet channel” as forces that promote competition.
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Readers' comments (5)
Anonymous | 12 Apr 2011 9:38 am
.... Steady boys ..steady! sell the 600, and calculate the accumulated revenue from the other 400 branches and start talking around that figure to be pumped back into growth.
Horatio don't make the mistake of thinking that our Conservative Government is on a short hold ticket it is here for at least a decade and then some, China will not do business with the other lot whatever you may wish to label them so now is the time to come together, it's all green shoots around the corner, so start calling him David.
Yrs
kk.
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Kevin Fowler | 12 Apr 2011 9:56 am
I'd be delighted to see lloyds sell off the 600 branches as likely to accelerate the end of dual pricing. If LBG see intermediaries as such an part of helping competition why have they penalised the intermediary product range with more expensive products ? Hopefully the TCS aren't buying this stuff.
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Anonymous | 12 Apr 2011 10:00 am
Lloyds support the IFA market!
C&G business gone, duel pricing and uncompetitive terms and rates.
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jimbo jambo | 12 Apr 2011 2:36 pm
It seems that the banker wants it all,I believe we have seen enough of the branch closures on the high street and Lloyds have let go how many (staff)since we bailed them out.
Not lending not spending and not helping.
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John Harding | 13 Apr 2011 11:20 am
Looking after LBG staff is your business Antonio. The ICB has a wider brief which is to promote a healthy banking sector, which probably means that LBG does need to be reduced in size. Indeed the only reason that Lloyds TSB were allowed to take over HBOS in the first place was politically led by Gordon Brown when he pushed aside any idea of a competition referral which would have quickly scotched this type of deal at any other time.
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