Is free personal banking justified? Peter McNamara, former head of personal banking at Lloyds TSB, told the Today programme that free personal banking "does distort the market in fundamental ways" as "it means people don't compete" when a product is offered at the same charge. He does however warn of a "social consequence," as "people who are not very well off will end up paying." Peter Hahn, from the Cass Business School in London, says banks have to cover expenses. Banks have to make up the money lost on free banking, "maybe by taking risks with the money" he told James Naughtie.