UK Supreme Court rejects Reeves' intervention in motor finance case

UK Supreme Court rejects Reeves' intervention in motor finance case, bank shares slide | Reuters

LONDON, Feb 17 (Reuters) - The UK Supreme Court on Monday rejected a move by finance minister Rachel Reeves to intervene in a landmark case on car loan mis-selling, sending shares in lenders Close Brothers (CBRO.L), opens new tab and Lloyds Banking Group (LLOY.L), opens new tab sharply lower.

Britain's Treasury said in January it was worried that a court judgment handed down in October, if allowed to stand on appeal, would make it hard for consumers to get car loans.

The Treasury argued that any customer redress should also be proportionate to the losses suffered by consumers.

By 1615 GMT, shares in Close Brothers had slid 6.8%, having earlier fallen as much as 15% to 295 pence per share. Lloyds shares, which had been higher on the day along with most banks before the ruling, reversed direction and were last down 2.7%.

In what could become one of the UK's costliest consumer banking scandals, Britain's motor finance industry was found liable by the Court of Appeal in October for "hidden" commissions following an investigation into historic sales.