TSB bank returns to the High Street with a pledge ‘to do what is right for Britain’
Chief executive promises not to take part in 'socially useless' banking done by rivals
Jim Armitage is the City editor of The Independent and London Evening Standard group of newspapers. He has been a reporter and editor for more than 20 years and was recently shortlisted for the Press Gazette financial journalist of the year and The Society of Editors financial journalist of the year awards. He contributes news, investigative reports and comment to the Independent titles plus a daily column in the Evening Standard.
Monday 09 September 2013
The TSB bank today returned to the High Street, with its chief executive saying it would never take part in the kind of “socially useless” investment banking done by City rivals.
Speaking as the 631 branches — with 4.6 million customers and more than £20 billion in loans and deposits — that Lloyds was ordered to sell by Brussels began their new life as TSB, Paul Pester said: “I am firmly of the view that banks have to do socially useful work.
“So do not come to our bank if you want your investments to go into derivatives, investment banking, large corporates overseas. We will be all about using customers’ deposits to help create local economic growth. We are doing what is right for Britain and trying to right some of the wrongs of the banking industry.”
TSB itself is born of some of those wrongs — the disastrous high-risk commercial lending done by HBOS, which led to it being taken over by Lloyds during the financial crisis. That deal quickly soured, necessitating a bailout by taxpayers, who still own nearly 40 per cent of Lloyds. In return for that, the European Commission insisted Lloyds offload 600-plus branches — known as Project Verde — to a new player.
Chancellor George Osborne is gearing up to announce the first sell-off of part of the taxpayers’ stake in Lloyds later this week. It is expected that about 10 per cent, a quarter of the Treasury holding, will be offered to institutional investors ahead of next month’s Conservative Party conference.
“We are here with a really clear mandate to bring more competition to UK banking. How are we going to do that? By bringing a local banking model back to Britain,” Pester said. “Customers want to know their savings are going into the local community, not to fund big bankers’ bonuses.”
On his own pay, Pester said: “I will be proposing a different way of rewarding the senior team.” He declined to give details but it appears he and his board will be paid on a longer-term performance model than most other City banking executives.
- 2 Rarest Beanie Baby of them all could be sold for £62,500 on eBay
- 3 Professional big game hunter Ian Gibson crushed to death by elephant during hunt
- 4 Farmer told to tear down mock-Tudor castle after hiding construction behind hay bales
Migrants crossing the Mediterranean: Pope Francis joins calls for EU action on boat refugees
Yemen crisis: Meet the child soldiers recruited by the Shia Houthi rebels who have forsaken books for Kalashnikovs
Alan Rickman admits editing 'terrible' script with friends in Pizza Hut behind backs of writers on Robin Hood: Prince of Thieves
Rarest Beanie Baby of them all could be sold for £62,500 on eBay
Isis in Afghanistan: Group claims responsibility for Jalalabad suicide bombing that killed 35
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
The only black face in the Ukip manifesto is on the page about overseas aid
Ukip is the only main political party to not address LGBT rights in its manifesto
Food banks: One million Britons will soon be using them, according to Trussell Trust
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
BBC election debate: The one photo that summed up the whole 90-minute leaders debate
iJobs Money & Business
£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...
£50000 - £667000 per annum + excellent benefits : Ashdown Group: IT Manager / ...
£13000 - £20000 per annum: Recruitment Genius: Scotland's leading life insuran...
£40000 - £45000 per annum + benefits : Ashdown Group: Training Programme Manag...