LONDON, Oct 25 (Reuters) - Britain's banks have been threatened with a competition inquiry by a finance minister over the bumper fees they charge clients, The Independent on Sunday reports.
Financial Services Minister Paul Myners said that there is such a level of concern over the fees that banks charge for services such as M&A advice and over-the-counter hedging transactions that the government could launch a competition probe.
'We would prefer a market solution. However, if the market can't fix itself, then we might have to take action,' the paper quotes him as saying.
Myners told a Financial Times conference last week that bankers are pocketing bonuses of up to 10 million pounds ($16.65 million), and up to 60 percent of gross fees from merger and acquisition transactions, when most deals represent poor value over time.
($1=.6006 POUND)
(Reporting by Ben Deighton; Editing by Diane Craft) Keywords: BANKS FEES/ (ben.deighton@reuters.com; +44 207 542 7009; ben.deighton.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Financial Services Minister Paul Myners said that there is such a level of concern over the fees that banks charge for services such as M&A advice and over-the-counter hedging transactions that the government could launch a competition probe.
'We would prefer a market solution. However, if the market can't fix itself, then we might have to take action,' the paper quotes him as saying.
Myners told a Financial Times conference last week that bankers are pocketing bonuses of up to 10 million pounds ($16.65 million), and up to 60 percent of gross fees from merger and acquisition transactions, when most deals represent poor value over time.
($1=.6006 POUND)
(Reporting by Ben Deighton; Editing by Diane Craft) Keywords: BANKS FEES/ (ben.deighton@reuters.com; +44 207 542 7009; ben.deighton.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2009 AFX News
