Three UK brokerages complain of "bullying" banks

Mon Nov 9, 2009 1:48pm GMT
 
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* Letter to minister attacks state-backed banks

* Panmure Gordon, Numis, Evolution file joint complaint

* For a related column, click on [ID:nN09248754]

LONDON, Nov 9 (Reuters) - Three of London's best-known brokerages have accused Britain's bailed-out banks of "bullying" debt-burdened corporate clients into using their investment banking services, skewing already tough competition.

The chief executives of Panmure Gordon (PMR.L), Numis Securities (NUM.L) and Evolution Securities (EVG.L) said in a joint letter to Paul Myners, Britain's financial services minister, that the behaviour amounted to "corporate bullying".

The letter, seen by Reuters on Monday, does not name part-nationalised Royal Bank of Scotland (RBS.L) and Lloyds (LLOY.L), 43 percent state-owned, but takes aim at both.

"The behaviour of taxpayer-funded banks is stifling competition in the capital markets," the three said, adding independent players who were not bailed out by the taxpayer should not be placed "at a competitive disadvantage".

In the letter sent on Friday, the brokers said the banks should not make it a condition of lending that the company is forced to use the bank's in-house stockbroker.  Continued...

 

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