Barclays Plc, Lloyds Banking Group Plc

With British law makers wanting to slacken the grip of Britain’s four biggest lenders: HSBC, Barclays Plc, Lloyds Banking Group Plc and the Royal Bank of Scotland Group Plc, U.K antitrust regulators said that there is a great chance they will open an investigation into the checking accounts and banking services for small firms as customers seem to lack real options. The fact that these banks control more than 90 percent of the market for small business loaning and have been hit by scandals such as illegitimate sales of interest-rates exchanges and payment protection insurance, explains this pending investigation. With the current developments that aim to shock competition between the banks, Europe’s leading bank, HSBC and Allied Irish Banks Plc First Trust Bank were attacked by regulators as they violated competition rules by pressuring smaller companies to open accounts with them before allowing them borrow money. As a result of this scandal, several new banks have started up in an attempt to challenge the country’s leading lenders.
It is obvious that existing regulatory and supervisory have failed to regulate the finance industry. The solution therefore relies on having improved regulation, not necessarily more regulation, based on actual supervisory institutions as well as transparency in financial market agreements. The concern of transparency within the financial sector will persuade managements of financial corporations to conduct themselves more carefully. This article greatly relates to FED supervisory and regulatory functions, particularly its specific supervisory responsibilities, like on-site investigation of commercial banks and specific regulatory duties, like