OFT won’t report banks

Marion Dakers
THE OFFICE of Fair Trading has decided not to report London’s investment banking industry for anti-competitive practices, according to reports last night.

The OFT has spent six months looking at whether equity underwriting practices stifle competition, but does not have enough evidence to make a formal referral to the Competition Commission.

The watchdog said in June that “there is some dissatisfaction among corporate users of the market” over the fees charged by the biggest investment banks for underwriting rights issues.

The banks could still face measures short of a full-scale competition probe, according to Sky News.

The biggest equity underwriters in London include Goldman Sachs, JP Morgan and Barclays Capital.

The OFT’s findings are due to be released at 7am today.