Today the Office of Fair Trading has confirmed that two major banks have been raided over the possible Price-Fixing in commercial banking. The consumer watchdog has launched an investigation into alleged anti-competitive conduct in the Royal Bank of Scotland and Barclays after raiding the banks two weeks ago.

The investigation is into loans to professional services companies, such as law and accountancy firms. In a statement “The OFT can confirm that it has launched a Competition Act investigation into alleged anti-competitive conduct in the financial sector, the investigation has a narrow focus, relating to the provision of loan products to professional services firms, and is limited to two parties. As part of its investigation the OFT has visited two sets of business premises. The OFT’s investigation is at an early stage.”

Barclays said in a statement that “Barclays recently became aware that certain members of its professional services team in Barclays Commercial Bank had been approached from outside Barclays in a manner which we regarded as inappropriate. Barclays notified the Office of Fair Trading of this voluntarily on 17 March. As a result, the Office of Fair Trading started an investigation in which Barclays is participating. The investigation is operating within the confines of the professional services banking area and we believe that, if there is any issue, it starts and stops there. Barclays can confirm that it is the leniency applicant.”

Royal Bank of Scotland is said to be co-operating with the investigation.

What are your views on this?

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