Treasury select committee chairman Andrew Tyrie says the Government needs to be ready for any decision which it may have to take when the Independent Commission on Banking Reports in the Autumn.
The commission is being led by Sir John Vickers and was set up by the Government to look at reforming the banking sector to promote financial stability and competition, including the possibility of splitting retail and investment banking.
In an interview with the Guardian, Andrew Tyrie says the Government must have the stomach for the fights it may face as a result of the report.
He says: “When Vickers reports in the autumn and decisions need to be taken it will be important the Government has the stomach for any fights.”
Earlier this week the TSC took evidence from Barclays chief executive Bob Diamond and Tyrie admits the session did not solve many problems the committee is trying to address in its own inquiry into competition and choice in the Banking sector.
The majority of the two and a half hour session was taken up with questions about bonuses.Tyrie intervened at several points during the sessions to allow Diamond to defend himself against exchanges with some of the MPs.
Tyrie says: “It is important people like Bob Diamond understand the scale of public concern about what has happened over the last few years, but it is important that the public understand some of the points he and others have been making.
“Britain has benefited hugely from a successful financial sector over the years, and that has not been expunged by the crisis of the last few years.”