Lloyds, RBS groups to broken up and three new banks created
Three old banking names will arrive back on the British high street, the UK Govenment is expected to anounce this week.
They are to split up the Lloyds, RBS and the Northern Rock banking groups and form three new banks.
Both banks are basically owned by the taxpayer, the split will mean Royal Bank of Scotland and Lloyds banks will remain, but a large percentage of their branches will be moved to three new banks.
RBS will only function again in Scotland as The Royal Bank of Scotland and all English & Welsh branches will be moved to the new bank, or should I say old bank Williams & Glyn's. Lloyds will bring back The TSB & BankCo.
Once formed they will be sold off but not to existing financial institutions, new entrants to the banking market.
Those old banks were gobbled up by the the current groups over the years.
The TSB, the old Trustee Savings Bank whose branches were bought up by Lloyds. These will now be resurrected across the UK.
Williams & Glyn's, which had a brief period of operation in the 1970s and 1980s. Owned by RBS, it will be formed of hundreds of the Scottish group's English branches.
BankCo, the "good bank" portion of the entirely state-owned Northern Rock, which will include retail deposits, mortgages, and branches. Ministers are keen to sell the operation off as soon as possible
Under the law these banks still exists as a separate legal entitys that files accounts at Companies House.
The plan was put in place after talk with the European Competition Commissioner over reducing the scale of state-supported banks. The new plan should be complete by 2015.
Tesco, Virgin Money and National Australia Bank are expected to become potential buyers.
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Glasgow, Scotland, United Kingdom