Tory MP Greg Clark, the Financial Secretary to the Treasury, said the Banking Reform Bill set to be introduced by George Osborne today will protect taxpayers.
He told the BBC:
– Greg Clark MP
We don't want the taxpayer to have to stump up to rescue the banks again, that's what this is about.
We need to get out of the situation where banks are too big to fail, or too complex to be sorted out in a crisis.
The ring fence will make sure banking services provided to people and businesses will continue in the event of the failure of the bank, without the taxpayer supporting it.