February 18, 2025 - 01:59
Shares in British lenders Close Brothers and Lloyds Banking Group experienced a notable decline on Monday, following reports that the Treasury has been prevented from intervening in the Supreme Court review regarding the motor finance misselling case. This development has raised concerns among traders and analysts about the potential implications for the banking sector.
Lloyds' shares fell by 3.8%, reaching a one-and-a-half-week low, reflecting the market's apprehension over the situation. Previously, the Treasury had signaled the necessity of its intervention to persuade the Supreme Court that any customer compensation required should be proportional to the harm suffered by the claimants. This stance was supported by Shore Capital, which highlighted the importance of ensuring that any redress does not disproportionately impact the financial institutions involved.
The uncertainty surrounding the court's decision has led to increased scrutiny of the banking sector, with investors closely monitoring developments that could affect the financial stability of these lenders.
