It’s Sunday. It’s 7am. And we’ve got the definitive musical proof that Australian Premier Kevin Rudd is not US President Barack Obama. But first, the news.
2 Big Stories
Government to set up bank chains
Done well, this could be rather good news. A bit more competition in the banking sector could improve service, reduce costs and – by undermining some of the basis for massive bank profits – indirectly help deal with massive bonus payments:
Three new High Street banking chains are to be created by the government by 2015 as part of a major overhaul.
They will be set up by breaking up Royal Bank of Scotland, Lloyds and Northern Rock, the banks it partially or wholly controls after bail-outs…
The aim of the new banks is to increase competition and recoup taxpayers’ cash.
The government, which holds a 70% stake in RBS and a 43% stake in Lloyds after last October’s bailouts, hopes to announce the sell-off plans on Tuesday.
The new banks will be standard retail banks concentrating on deposits and mortgages.
They will be sold to new entrants to the banking market and not to existing financial institutions. (BBC)