Neelie Kroes, the European Union’s competition commission, has stepped up threats to break up two of the UK’s four big banks in a move that could force Lloyds Banking Group to sell its Halifax or Bank of Scotland branch networks.
Lloyds has already signalled it will shrink and might have to sell core UK businesses such as branches or loan books.
Kroes also said the likelihood of significant divestments by Royal Bank of Scotland was strong.
Meanwhile, Tesco has emerged as a potential bidder for Northern Rock.
01/07/09 Financial Times 1, 13, 21
Times 1, 6, 7, 41
Daily Telegraph B3
Independent 35
