Big Banks Running An Oligopoly, Says Virgin Money Chief

[interestrateripoff]

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8266582/Big-banks-running-an-oligopoly-says-Virgin-Money-chief.html

Jayne-Anne Gadhia, chief executive of Virgin Money, told a meeting of the Treasury Select Committee that the UK’s five biggest lenders had an “effective oligopoly” and said more needed to be done to improve competition.

“The consumer has not got much of a look in. The problem is that effectively with the oligopoly it was very difficult to get scale,” said Ms Gadhia.

Ms Gadhia added that consumers were "being misled" by big banks, but often stayed with them because of "brand loyalty".

Under repeated questioning from the MPs, Ms Gadhia declined to call for the forced separation of banks, but admitted that some form of break-up of the branch networks of the largest lenders could be good for customers.

So oligopoly bad, but the forced splitting up of the big banks shouldn't happen?

Fantastic.

She also fails to grasp that if they are operating in an oligopoly their is no incentive to move because you are only going to move like for like which will offer no benefit so what's the point in moving.

[Georgia O'Keeffe]

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8266582/Big-banks-running-an-oligopoly-says-Virgin-Money-chief.html

So oligopoly bad, but the forced splitting up of the big banks shouldn't happen?

Fantastic.

She also fails to grasp that if they are operating in an oligopoly their is no incentive to move because you are only going to move like for like which will offer no benefit so what's the point in moving.

what shes asking for is impossible until after the collapse of said banks, any new banks not exposed to commercial lending, not exposed to mortgages for houses with low or no interbank lending. a bank which does not have investments in government bonds in countries with high national debt and low derivative exposure would immediately drain all the high street banks dry, outside of private banks which most cant access they are as rare as rocking horse shit for exactly the reason the high street banks would be fooked, shes gonna have to wait for implosion before they come

[porca misèria]

So oligopoly bad, but the forced splitting up of the big banks shouldn't happen?

Declined to call for [split] is not at all the same as saying there should not be a split.

She's presenting her view (there's an oligopoly), but leaving our lawmakers to decide what to do about it. Makes it easier for them if by any chance they do decide on serious action if they can do it off their own bat and not be seen to be tools of a rival's agenda.

[billybong]

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Edited January 19, 2011 by billybong

[Bloo Loo]

Ms Gadhia added that consumers were "being misled" by big banks, but often stayed with them because of "brand loyalty".

Ill take my overdraft elsewhere....whoops...they dont want me.

Odd that in GC1, banks wouldnt take peoples overdrafts, when they are the ASSETS the banksters hold...I guess they really were writing them down at that time...this time, they darent....

[Democorruptcy]

Virgin Money are obviously trying to crush this oligopoly by offering better rates to attract more customers:

Virgin savings account:

Earn interest of 0.1% AER on your balance

Virgin Credit Card

16.8% APR