Labour's 'banking revolution'

Labour leader Ed Miliband has called for a major overhaul in the banking sector. Miliband called for an increase in the power of the Serious Fraud Office and an end to 'light touch' regulation.

Labour proposals 'will not solve funding gap faced by firms'

Commenting on Ed Miliband's speech on reforming banking, Adam Marshall made this statement on behalf of the British Chambers of Commerce (BCC):

There are limited choices for businesses looking for credit vital to grow, invest, and take on staff. What’s more, switching between banks can be an administrative nightmare for many companies ... Creating new banks is one way of driving up competition and choice, but on its own, it will not solve the funding gap faced by firms. The creation of a dedicated business bank would ensure that new and growing companies can access the finance they need to develop new products and services, export to new markets, and take on more staff.

– Adam Marshall, BCC

Banks need to 'start serving our country'

David Hillman, a spokesman for The Robin Hood Tax campaign, had this response to Ed Miliband's proposals to reform the banking sector:

Ed Miliband is right to call on banks to start serving our country, for too long it has been the other way around. But he is only halfway towards a comprehensive solution. Yes we should crack down on banks' predatory behaviour, but we need to do more. We need a fair deal for taxpayers from a sector whose vast profits and pay are effectively underwritten by the public purse.

– David Hillman, Robin Hood Tax campaign

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Labour remains sensitive about its track record on regulation

by - Political Correspondent

Ed Miliband has called for a return to a form of banking where banks actually look after small businesses and individual customers, rather than trying to sell them complicated financial products that leave them out of pocket.

Labour remains sensitive about its own track record on financial regulation. The Shadow Chancellor Ed Balls described my suggestion that the regulation was toothless as "claptrap".

But the public will probably agree with much of what was said, especially about bonuses and Bob Diamond keeping his.

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Vince Cable: Labour's banking proposals 'uncontroversial'

Business Secretary Vince Cable Credit: Stefan Rousseau/PA Wire

The Business Secretary Vince Cable has described the proposals that Ed Miliband is expected to make in a speech on banking as "uncontroversial".

"We know that there’s a lot more has to be done, and a key part of it – as Mr Miliband has been saying – is getting in more competition," he told Sky News.

He said there is already more competition in the banking sector: "Lloyds have sold off branches to the Co-op, Nationwide are getting into business lending, you’ve now got the Metro bank, Virgin Money, and we want to encourage more banks."

Ed Miliband's blueprint for better banking

The Labour leader Ed Miliband will make a speech at 10:30am about how to reform banking in the UK following the Libor rate-rigging scandal. Here are his main proposals:

  • Culture shift from "casino" banking to "stewardship" banking
  • Creation of two "challenger" banks to break up dominance of the 'Big Five'
  • 'Big Five' to sell off a further 1,000 branches to competitors
  • A 'code of conduct' for bankers, as there is with doctors
  • A cap to limit bankers' bonuses to the same amount as their annual salary
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