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ICB urged to be more radical

Treasury select committee member Andrea Leadsom is calling on the Independent Commission on Banking to be more radical and consider breaking up the big banks into smaller organisations to increase competition.

The commission’s interim report, published in April, proposed ringfencing retail banking activities rather than a complete split between investment and retail banking.

Conservative MP for South Northamptonshire Leadsom says the increasing dominance from big banks in the provision of services has reached unhealthy levels.

She says: “We desperately need competition. The ICB is not being radical enough. Rather than looking at splitting banks along retail and investment lines it should look at breaking them up into smaller operations.”

Currently, smaller banks pay to use clearing systems owned by bigger banks. Leadsom says this system should be replaced with a central plug and play clearing system, owned and licensed to banks by the Bank of England.

She says: “It would cost hundreds of millions of pounds to build but it would also be a perfect ringfence. When a bank gets into trouble, the bank could simply cut them off from access to their current accounts and hand them to another bank.”


Flat-rate £140 state pension wins vote

The Government looks set to introduce a £140 flat-rate, single-tier state pension after respondents to the consultation overwhelmingly backed the proposal. The Government’s green paper on state pension reform, published on April 4, outlines two potential reform options. The first is an acceleration of the previous administration’s plans, so the state second pension would move […]

US announces deficit deal

President Obama confirmed yesterday that a bipartisan agreement has been reached between parties that would allow the debt ceiling to be raised. The risk of default has been averted before the August 2 deadline, as both Democrats and Republicans negotiators have agreed to  $1 trillion in cuts over the next 10 years. The new proposals […]

Global funds top sales in June

Global funds overtook £ strategic bonds to become the bestselling sector for June and had the highest sales rate on record, according to the latest results from the Investment Management Association. Global funds saw £332m in sales and have now remained in the top five selling sectors for a seventh consecutive month. Over the past […]

Large-cap growth alpha thesis: seeking risk-adjusted excess returns

Content supplied by Loomis, Sayles & Company — an affiliate of Natixis Global Asset Management For mutual fund investors and managers of large pensions or endowments, a major challenge is to identify those portfolio managers who are most likely to deliver superior risk-adjusted returns in the future. Understanding how an investment philosophy informs a manager’s decision […]


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