Written evidence submitted by Mr and Mrs
Ralph
REVIEW OF
RETAIL BANKING
COMPETITION
We read that you are seeking comments from organisations
and individuals regarding banking competition as part of the newly
commissioned review. We further understand that in advance of
that review, you support the break-up of partly owned banks such
as Lloyds and RBS - we find this extremely disappointing.
Could we ask that you bear in mind the plight of
several million small shareholders, including ourselves, who've
lost a substantial part of their savings as a result of the Lloyds/HBOS
merger. To enforce a demerger beyond that required by the EU would
be devastating to share value. Lloyds did the previous government,
and by implication, the present coalition, a huge favour by taking
over HBOS at the height of the credit crisis. We believe it has
managed the integration process well but it is surely not right
to destroy value to its shareholders (including the taxpayer)
by further government intervention beyond that required by the
EU state and roles.
In our view, there is adequate competition on the
High Street and the banks which survived the crisis without direct
government assistance will, in any event, but stronger entities
and therefore control the market. Lloyds and RBS are weakened
and will need many years to recover, but further demands on them
could well destroy them only for foreign banks to take over.
We would be grateful for these comments to be taken
into account in your deliberations.
July 2010
| 
