Brussels to give green light for Northern Rock split
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The European Commission is expected to give the go ahead today for Northern Rock to be split into a “good” and “bad” bank.
There are also reports that Royal Bank of Scotland and Lloyds Banking Group will be ordered to break up some of their assets and could have to sell off hundreds of their bank branches.
Neelie Kroes, the EU’s competition commissioner is reported to want those branch networks to be sold off in two chunks and for Northern Rock to become an active mortgage lender again.
Reports say this means there will soon be three new banking groups to compete with the long-established players and the newly created Lloyds Banking Group.
