RBS, Lloyds managers defend structure of the banks

The managers of government stake in big banks like RBS and Lloyds have defended the structure of the banks and has shown its disregard for breaking them into separate entities of retail and investment arm.

Chairman of UK Financial Investments, Sir David Cooksey has argued and said that if these two banks are broken down then that would greatly destroy their value.

The institute is the one that handles government's shares to the lenders. He has clearly shown his rejection to the argument that calls for these units to be broken down into retail and investment.

While talking in front of the parliamentary Treasury Select Committee he said that they have considered the idea of dramatic separation, but it is hard to study the full impact of the step.

Meanwhile, the Independent Commission on Banking has opened a forum wherein they are asking for ways and means to reform the banks in UK. The main idea is that they should stand strong and not face the situation like they have done today.

On the other hand, UKFI chief executive Robin Budenberg has said that these banks should be allowed to pay bonuses so that they remain competitive.