- 2 updates
Andrew Tyrie, chairman of the Independent Commission on Banking, called for further reserve power to break up banks if they do not adhere to rules to separate investment and high street operations.
He added that the Government had also failed to address the panel's recommendation for a periodic, independent review of whether the ring-fence is doing its job. Bank of England governor Sir Mervyn King is among those in favour of this.
The Chancellor's attempts to "re-set" Britain's banking system still do not go far enough, a panel set up following the industry's Libor-fixing scandal said today.
On the day that MPs debate the Banking Reform Bill, the Parliamentary Commission on Banking Standards stepped up pressure on the Government to back recommendations from its first report not currently in the planned legislation.
In particular, it wants more powers for the Bank of England to control how much banks can borrow, as well as for regulators to have the power to force a complete split of retail and investment banking operations.