There has been lots of talks for months and months about the split up of the national banks that now rely so heavily on the Government. With the Government owning 43% of Lloyds and 70% of RBS this has been a widely talked about issue.

The banks will want to get their houses in order before the end of the financial new year. The competitions commission of the EU, Neelie Kroes, wants to use her powers to put conditions on state aid to encourage competition in the UK banking system as she has done elsewhere. These two factors mean that the pressure is really on.

This will mean a scaling down of the UK banks and the Government Asset Protection Scheme. Lloyds and RBS will have to sell off some of their mainsteem well known branded company divisions. They will also be under pressure to get rid of some of the investment banking sides of the business so as to lessen the risk on the UK taxpayers.