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.