Article: Comment: 'Steely' Neelie set to prove her mettle in banks battle

WE LOOK to be edging towards the endgame, as far as the sacrifices Royal Bank of Scotland and Lloyds Banking Group will have to make to satisfy the EU competition commissioner, "steely" Neelie Kroes.

The European Commission wants the two banks to make substantial disposals to compensate for the billions of pounds of taxpayer support they have received, and their proposed participation (Lloyds's uncertain, admittedly) in the government's toxic asset insurance scheme.

Strong sounds offstage suggest one of Kroes's favoured options is for RBS - 70 per cent-owned by the taxpayer - to sell or hive off its 300-odd branches in England and Wales.

The beauty of this, from Kroes's point of view, is ...

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