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
Dramatic footage has emerged of a mother and her toddler being rescued after their car plunged into an Amsterdam canal on Tuesday.
Beth Tweddle has begun walking unaided following neck surgery after injuring herself during training for TV reality show 'The Jump'.
Actor Bill Murray has offered to pay for the mobile phones of two fans he allegedly threw from bar after they tried to take photos of him.