The Office of Fair Trading (OFT) could raid more banks as it widens its investigation into alleged price fixing by Barclays and Royal Bank of Scotland (RBS), a competition lawyer has warned.


The OFT raided the two banks following a tip-off from Barclays that there was alleged collusion over the sale of loans to professional services firms, including lawyers and accountants.



Emanuela Lecchi, head of competition and regulation at City firm Charles Russell, said: 'The OFT must already have critical evidence from Barclays' whistle-blowing. Other banks should expect a dawn raid - or at least to be called in.'



Lecchi added that Barclays, as the whistleblower, could escape any fine under the 'leniency' rule. 'But there was still the danger of a third-party action for damages - especially as the loans were sold to lawyers and accountants.'



Barclays released a statement confirming it was the leniency applicant, saying it was inappropriate to comment further at this stage.



An RBS spokesman said: 'We are co-operating fully with the regulatory authorities and it would therefore be inappropriate to comment further.'



The OFT said it was too early to say whether the law had been infringed.



Jonathan Rayner