View more on these topics

Cable to call for “rip-off” banks to be broken up

Liberal Democrat business secretary Vince Cable is to warn that the ring-fencing of banks may not go far enough to prevent a future financial meltdown.

According to reports, Cable will state that banks have an ‘ingrained rip-off culture” and that they extract an ‘excess profit’ from consumers and small businesses.

Ring-fencing the high street and investment arms of banks was first put forward in Sir John Vickers Independent Commission on Banking. The final report is due in September.

Cable will call for full seperation, a move that goes against Chancellor George Osborne’s idea to split the high street and investment arms but continue to allow them to operate under the same roof.

Cable is to call on the ICB to provide “convincing answers to some critical questions” and that the ring-fencing can be as effective as full seperation but at a lower cost.

Cable will also call for a shake-up of competition in the banking sector with it being made easier for customers to switch banks.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com