Myners to investigate "bullying" by banks
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City Minister Lord Myners is to investigate allegations that Royal Bank of Scotland and Lloyds Banking Group have been “bullying” corporate clients to win business, according to The Telegraph.
The allegations were made in a letter by three City broker firms - Gordon Panmure, Numis and Evolution - and the letter was signed by the senior executives of these firms.
According to the letter, the two banks were forcing businesses that owed them money to use their investment banking services.
It said: “Taxpayer-supported banks are requiring indebted corporate clients to use their corporate finance and equity capital market services as a pre-condition for continuing their lending support.”
Lloyds Group would not comment on the allegations.
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Readers' comments (4)
MP embarrassing team | 10 Nov 2009 1:32 pm
Are you up to this job? You were the guy who signme off Fred the Sheds (RBS top man) big pay off and grotesqe pension fund!
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Phil Stevenson | 10 Nov 2009 3:05 pm
WOW! Allegations that the banks bully their corporate clients, who would have believed that? Well for those of us lower down the food chain we see this sort of thing going on all the time. Banks 'coercing' their smaller corporate clients to buy some of their other services because as they never cease to stop telling those clients..... 'they might need to renew their overdraft or lending facilityone day'.Might be an idea to extend the scope of the review don't you think.?.....
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Evan Owen | 10 Nov 2009 3:24 pm
Anybody out there remember my tale of blackmail? What is even worse is the use of this weapon to silence complainants.
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Angela Maher | 10 Nov 2009 7:35 pm
Nothing new under the sun...
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