Myners threatens investment banks with fee inquiry
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City minister Lord Myners has warned investment banks that the Government could launch a competition inquiry into the level of fees they charge for services because they are too high at present.
Myners said there was growing discontent among shareholders and company directors over the bloated fees investment banks charge for services such as corporate advice on mergers and acquisitions and underwriting fees on rights issues.
He said that the return of big bonuses so soon after the financial crisis demonstrated the high level of profits being earned by the banks.
Myners said: “We would prefer a market solution. However, if the market can’t fix itself, then we might have to take action.”
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Readers' comments (1)
Geoffrey Keeys | 26 Oct 2009 1:02 pm
This has to be the core of the problem and we should be going down this route as opposed to micro control over bonuses.
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