So, that’s it for the Office of Fair Trading (OFT), yesterday they announced that they are going to drop any further investigation into the fairness of bank charges. The OFT has spent the last 3 years examining bank charges and bringing a case against the banks, presumably believing there was a case for the industry to answer, and now this.

They win two cases and lose one on a technicality and they give up. This decision means millions of unfair bank charges claims will have to be fought alone by the customer and a 3rd party if they choose to use one. The OFT will not get involved.

As you may know: the Office Of Fair Trading (OFT) lost their case against the banks regarding the fairness of bank charges and we explained the ramifications of the decision shortly after the result. But many pundits and campaigners (including ourselves) took hope from the final words of Lord Phillips, President of the Supreme Court when he said that the OFT is free to bring the case back to court under different legislation.

With this statement ringing in all of our ears, you can imagine everyone is keen to know what the next move of the OFT will be. And because you stopped by the blog today, we can give you a heads up on their announcement.

It’s going to be next tuesday, 22nd December and the watchdog will reveal whether they are going to continue the fight against unfair bank charges. We can’t give you a time because the OFT are aware that what they have to say is likely to affect the stock market. But previous comments from the OFT suggest that the announcement will be at 6pm, after the markets close.

Lets hope they keep up the fight, especially after Martin Lewis revealed that (after expert legal advice) he believes there is a new ‘blockbuster argument’ that hasn’t been used previously.

Did you hear? Alistair Darling’s hit the bankers where it hurts – in the pay packet. The Chancellor of the Exchequer has introduced a 50% tax on all bonuses over £25,000 as he asks bankers to pass the ‘neighbour test’.

Darling says all bankers must be able to look their neighbours in the eye and be proud that they make an honest living. The new levy will bring in £550 million over the next year which will go towards the budget deficit created by the banks. It’s expected that this harsh line will not be replicated in other countries but will affect the London based subsidiaries of foreign banking institutions.

The City’s seen some toys thrown out of the pram this morning as Royal Bank of Scotland (RBS) bosses have been campaigning for £1bn in bonuses. The board of the Government-owned bank have said they’ll walk out if staff don’t receive the bonuses and warned that the bank could lose all it’s best workers if the money isn’t paid.

Unsurprisingly, the Government isn’t too keen on the bonuses seeing as RBS has just had £70bn off of the taxpayer (£4600 per family in the UK) and as the majority shareholder they can refuse to pay. Some critics of the banks are saying let the board go and what with the recent Supreme Court decision on unfair bank charges, the Govt. need to give joe public a sign that the banking world is getting fairer.