Lower bank profits to push up prices for customers

AP

A new report on banking spells out how the profits of Britain's largest banks have suffered at the hands of the eurozone crisis, payments for mis-sold payment protection insurance, the bank levy and new regulatory requirements.

Unfortunately, while you may smirk at their misfortunes, any mirth is likely to be short-lived, as the banks' woes are expected to translate into higher charges for personal customers. Forced to hold more capital, the banks will also lend less, and they are expected to lay off more people.