OFT raids banks over price fixing

Barclays and the Royal Bank of Scotland (RBS) have been raided over loan price-fixing allegations.

The Office of Fair Trading (OFT) has launched a Competition Act investigation into anti-competitive practices over loans to law and accountancy firms.

An OFT spokesman explained the maximum possible fines for price fixing are ten per cent of global turnover.

However, given the narrow part of the businesses involved, any fine – if a party was eventually found to be guilty of any price-fixing - was unlikely to be so high.

The spokesman added: "As part of its investigation the OFT has visited two sets of business premises.

"The OFT will not be in a position to conclude whether the law has in fact been infringed until it has completed its investigation and assessed the available evidence."

The investigation started when Barclays told the OFT on March 17th about approaches made to members of staff of its professional services team in Barclays Commercial Bank

A Barclays spokesperson said: "We recently became aware that certain members… had been approached from outside Barclays in a manner which we regarded as inappropriate.

"The investigation is operating within the confines of the Professional Services banking area and we believe that, if there is any issue, it starts and stops there."

The bank also confirmed that as it blew the whistle on the alleged problem it has taken the status of 'leniency applicant', which means its likely to avoid prosecution.

RBS has stated it has working with the OFT.

A spokesperson said: "As the OFT has stated, they are in the early stages of an investigation.

"We are, as always, co-operating fully with the regulatory authorities and it would therefore be inappropriate to comment further."

Daniel Barnes