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
Phillip Schofield has revealed that an eccentric fan who wanted to marry him arranged a wedding - leaving him with the bill.
Very young children are just as likely to spread the disease as they are to catch it, a health chief warned.
Anger at the verdict in the shooting of black teenager Michael Brown has left the US deeply divided during its celebration of togetherness.