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:
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.
More top news
Theresa May will attend a key EU summit on Thursday, just hours after her authority was diminished by a humiliating House of Commons defeat.
The best of the sunshine will be in the east.
The British territory will allow only domestic partnerships after senators approved the Domestic Partnership Act by an 8-3 vote.