Make no mistake. Power has shifted. Britain’s free-wheeling banking model is finished. Profits will play second fiddle to social responsibility. Bonuses will no longer be in cash. By Philip Aldrick, Banking Editor Corporate clients will be offered products that mitigate their risk, rather then promise undeliverable yields and returns. Growth will be slower. Lenders will become households’ fourth utility, after gas water and electricity. Thatcher’s Big Bang revolution is over. After the £28bn equity injection into Royal Bank of Scotland, HBOS and Lloyds TSB, the Government will have effective control of two of Britain’s biggest banks. The Treasury will own roughly 60pc of RBS and 43.5pc of the merged HBOS and Lloyds. The Government is providing a further £9bn of preference shares to the three banks for good measure - to make...
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