The accusation banks can’t escape

From Mr Oliver Hemsley.

Sir, Until a split is enforced, UK banks that have investment banking operations can never escape the accusation that they use “subsidised” lending to gain higher margin investment banking business (on which large bonuses are paid). This potential conflict stifles competition and innovation and relies on the taxpayer to stand behind the retail and commercial banking operations while the cream is skimmed off in bonuses.

Oliver Hemsley, Chief Executive, Numis Securities, London EC4, UK