Royal Bank of Scotland and Lloyds Banking Group have been accused of forcing cash-strapped firms to use their investment banking services as a condition of lending, according to Reuters.
In a letter written to UK financial services minister Paul Myners, three London brokerage firms said the behaviour of the bailed-out banks, which they did not name, was tantamount to "bullying". The letter was signed from the chief executives of Numis Securities, Evolution Securities and Panmure Gordon. A spokesman for RBS, now 84% state-owned after the latest bail-out package last week, told Reuters: "RBS has a banking relationship with most of the UK's largest companies and this often includes a lending relationship - which is more important than ever when capital is scarce." Llo...
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