Obama yesterday announced “the Volcker rule” which will limit the scope of banks and ensure that no financial institution that contains a bank will own, invest in or sponsor a hedge fund or a private equity fund.
The rule will also limit the size of banks, placing broader limits on the excessive growth of the market share of liabilities at the largest financial firms.
Myners told the BBC that Obama’s plans are specific to the US economy and the Government will not separate retail and investment banking.
He says: “He is taking the right policy responses for America and we have taken the right responses in the UK.”
Shadow Chancellor George Osborne has supported Obama’s plan, saying a Tory government would push for a global deal to separate banking functions.