RBS and Barclays named in OFT investigation

by Gill Montia

Story link: RBS and Barclays named in OFT investigation

The Office of Fair Trading (OFT) has confirmed that it raided offices of Royal Bank of Scotland (RBS) and Barclays two weeks ago and has since been investigating allegations of anti-competitive practices at both banks.

The extent of the investigation is apparently narrow, focusing on commercial loans made to the professional services sector, which includes law and accountancy firms.

The action has apparently been prompted by Barclays, which notified the OFT of certain irregularities that involved its staff being approached from people outside the organisation.

RBS has pledged its full cooperation in the OFT investigation, however, Barclays may have upstaged its rival because in cases where companies have been found guilty of colluding to fix prices, the whistle-blower can be treated with leniency.