11 Apr '11, 10am

Response: A promising start, but #Vickers fails the acid test warns nef #ICB

The reforms set out by Vickers fail the acid-test, they are not sufficient to prevent further collapse. Radical reform is not optional, it is necessary. Installing a firewall between retail and investment banking is welcome, but banks must be broken up to a size where their failure doesn’t threaten the rest of the economy. Investment banks are ‘too big to fail’: leaving the investment banks untouched leaves the taxpayer dangerously exposed. Forcing Lloyds to divest branches is welcome, but the Commission must come up with proposals for a truly diverse banking system , with a range of players including mutuals and co-operatives, rather than simply managing competition between a few, very big banks. Unless this happens, banks will not be able to lend to Britain’s small businesses valiantly keeping the economy afloat The Vickers Commission must be protected from the powerful ...

Full article: http://www.neweconomics.org/press-releases/response-vicke...

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