Independent Commission on Banking chairman Sir John Vickers is expected to tell the large banks involved in both retail and investment banking activities that they should not expect to remain intact.
According to a report in the Financial Times, Vickers will use a speech on Saturday to outline a range of options which could be used to overhaul the banks, including measures which would force them to ring fence or “subsidiarise” their retail and investment activities.
The job of the Commission, which was set up by the Chancellor in June, is to consider reforms to the UK banking sector to promote financial stability and competition. It has been considering whether banks should be broken up or have their their retail and investment activities split.
The FT report says the Commission is unlikely to recommend the full-scale break-up of banks but has not ruled it out. It is due to report in September.