Britain's biggest banks will face complete separation if they flout new rules to ring-fence risky operations from savers' deposits, the Chancellor will announce today.
The new legislation will give the Government and a new banking watchdog powers to "electrify the ring-fence" if banks fail to split high street branch operations from the dealing floor.
Launching the Banking Reform Bill today George Osborne will tell traders at JP Morgan in Bournemouth there will be no more "too big to fail".
It comes after the Parliamentary Commission on Banking Standards, which was set up in the wake of the Libor rate rigging scandal, called for a reserve power for full separation if banks did not implement reforms.
More top news
A three-year-old boy has died after drowning at David Lloyd club on Tongue Lane in Leeds
The MP has become Welsh Labour's first deputy leader after the result was announced at the Welsh Labour conference in Llandudno.
The National Archives have confirmed they hold arrival records of thousands of people who came to the UK decades ago.