UK banks must ringfence retail arms, says the Independent Commission on Banking

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DimPrawn replied

11 April 2011, 12:51
Originally posted by lilelvis2000 View Post

No doubt the banks will object, the government will say that its not the way to go and everything will stay as it it.

WHS.

Billionaire bankers whining to millionaire government officials.

Nothing will change.
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lilelvis2000 replied

11 April 2011, 12:49
No doubt the banks will object, the government will say that its not the way to go and everything will stay as it it.
Leave a comment:
AtW started a topic UK banks must ringfence retail arms, says the Independent Commission on Banking

11 April 2011, 11:57
UK banks must ringfence retail arms, says the Independent Commission on Banking

The interim report published this morning by the Independent Commission on Banking is recommending a separation of how the retail and investment banking businesses operate, as well as measures to force future losses on bank bondholders.

Speaking on the BBC this morning, Sir John Vickers, chairman of the Commission, said the report would make sure taxpayers were “off the hook” if a bank got into trouble in future and would create a system for “safe failure”.

As part of the proposals put forward by the Commission, large banks will be required to maintain a minimum equity capital base of 10pc - or £10 of shareholder equity for every £100 lent out. This is 3pc above the level required by the Basel III rules introduced last year.

The report also addresses the need for more competition in the UK retail banking market and Lloyds Banking Group, Britain’s largest retail bank, would be required to dispose of more of its branches if the Commission’s recommendations are enacted.

In a statement to the market, Lloyds said it was “currently assessing the full implications of the report” and would provide an update later when it had had “the opportunity to review the report in detail”.

More from source: UK banks must ringfence retail arms, says the Independent Commission on Banking - Telegraph

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That's good, but does not go far enough - making it a requirement to have 100% of deals made with cash deposited in central bank without any debt leverages and tulip like that would have gone a long way towards eliminating some dirty spekulation from markets. Add to this transaction tax and high capital gains tax on short term (under 3 years) gains and problem sorted.

HTH
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