New bank creations will have little impact on market

"The real cost of the almost unimaginable level of losses made by the UK banks prior to the taxpayer bailouts is starting to become clearer. The breakup of historic institutions previously deemed ‘too big to fail’, while essential as part of reducing future risks, will inevitably lead to many more job losses.

"Unfortunately, it will do little to increase lending to businesses and individuals as the banks will still be struggling to 
repair their balance sheets for years to come. Any new banks will simply ‘cherry pick’ the most attractive lending business 
as they seek to avoid past mistakes.

"Despite recent headline adverts, first-time mortgages still almost always require a minimum 25% deposit and have very tight credit criteria. Across the UK, the road to recovery remains shaky and homeowners in the financial sector, many of whom are not highly paid, have a grim and uncertain start to 2010."

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