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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.

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