UK investment banks to be probed

UK investment banks are to come under the glare of the Office of Fair Trading (OFT) after the watchdog today announced a study into some of their fees and services.

The OFT said it planned to look at the equity underwriting market – where companies raise funds through share placings – after concerns were raised.

Last year recession-hit companies raised about £70bn (€84bn) of equity capital in the UK and forked out an estimated £2bn (€2.42bn) in charges, according to the OFT.