Banking reform plan to get full go-ahead, Vince Cable says

[AtW]

But it's enormously subjective.

I think it's pretty objective when bank fails utterly and requires tens of billions of taxpayer money to stay afloat and then keep paying billions in bonuses to staff who should have been out of the job in the first place had it not been for the taxpayer to bail them out.

How more objective would you like to get?

[WotNxt]

Sounds like this will require ALOT of work on IT systems though :-)

[lilelvis2000]

Is Mr. Cable the only one with the balls to take on the banks? I'm betting this statement by Mr. Osbourne will indicate the govt. will move forward with most of the recommendation..but when it comes to implementation..well that's when the govt. looks the other way.

What say the banking whore comes out tomorrow with another "This will ruin the banks and we'll all move away" statement tomorrow.

[VectraMan]

Courts make final decision and if necessary MPs should adjust laws to make that job easier.

But it's enormously subjective. Nobody on here can agree anything to do with the economy, and we're a very narrow cross-section of the population. Are judges qualified to rule on economics, or would you have special economist-judges? And what if the judges subsequently turn out to be wrong and that has a negative effect on the economy? Would you then prosecute the judges?

It has to come down to regulators, who are appointed by politicians, who give in to whatever short termist demands the electorate wants...

[AtW]

Who's going to decide what's "in the best public interest"?

Courts make final decision and if necessary MPs should adjust laws to make that job easier.

[VectraMan]

In 5 years bank bailouts will be forgotten and legislation can be changed "in the best public interest".

Who's going to decide what's "in the best public interest"?

Were the booming economy, and booming house prices of the late-nineties and noughties in the best public interest? Most people would probably have said yes.

[AtW]

In 5 years bank bailouts will be forgotten and legislation can be changed "in the best public interest".

[TimberWolf]

No AtW comment (apart from highlighting the nevernever date)? Was that date in the recommendations too?

Didn't you predict all this years ago?

[AtW]

"A report by the Independent Commission on Banking (ICB) that proposed lenders should be forced to split their retail and investment banking arms to help prevent future bailouts will be backed by Chancellor George Osborne in Parliament.

Mr Cable today told the BBC's Andrew Marr Show that the Government was ''going to proceed with the separation of the banks''.

But with the planned reforms estimated to cost the industry up to £7 billion, there are fears they will slow lending at a time when the economy is in danger of sliding into recession.

And the moves will heighten speculation that banks, particularly HSBC, will move their head offices away from London, depriving the UK of jobs and tax revenues.

Mr Cable told the programme: ''We have accepted the recommendations of the commission.

''It is absolutely right that we make the British economy safe. We just cannot risk a repetition of the financial catastrophe we had three years ago.

''Big structural reform of the banks was something we (Liberal Democrats) fought for and argued for and now it is going to happen.''

Mr Osborne will tomorrow give a statement to Parliament, after the Treasury publishes a detailed response to the report, which includes plans to force banks to hold more capital to help protect them against future crises.

He is expected to pledge to enact all primary and secondary legislation stemming from the report by the end of the current Parliament, with a white paper expected next year, according to newspaper reports. The reforms should be in place by 2019.

The Chancellor has come under pressure to water down the proposals from bankers, who claim they are unnecessary and could lead to higher costs for customers.

The Treasury is expected to confirm the ICB's estimate that the plans could cost banks between £4 billion and £7 billion, although industry sources have claimed the true cost could be as high as £12 billion.

It is expected that the Treasury's report will not go as far as spelling out how the ring-fence will work in practice and will leave the detail to regulators.

The ICB, chaired by Sir John Vickers, former head of the Office of Fair Trading, was set up by the coalition Government last year to conduct a full review of the sector after the financial crisis four years ago left banks including Royal Bank of Scotland and Lloyds needing bailouts."

Source: Banking reform plan to get full go-ahead, Vince Cable says - Telegraph