banks can fail

Chancellor : British banks are not too big anymore to fail – bit too late for that!

After the Overdraft scandal, PPI Mis-selling and Libor rate fixing among others issues the Chancellor finally gets tough, apparently?

British Chancellor George Osborne has warned the UK’s banks against failing to protect their retail operations from their riskier investment arms, otherwise they face being broken up.

“My message to the banks is clear: if a bank flouts the rules, the regulator and the Treasury will have the power to break it up altogether – full separation, not just a ring fence,” said the Treasury chief.

“We’re not going to repeat the mistakes of the past”, he added.

George Osborne told executives from JPMorgan that the days of banks being “too big to fail” are over in Britain.

He added that taxpayers shouldn’t be expected to bail out the lenders. The next time a crisis hits, he wants more options to act.

The new measure gives regulators the power to force a complete separation of a lender’s retail business from its investment banking.

Risky investments undermined banks’ stability in 2008, leading to taxpayer bailouts of two big U.K. banks.

Britain’s banking industry has also been caught up a in a series of scandals since the financial crisis in 2008.

Several leading executives at Barclays have been forced to step down after the bank was hit with £290m fine for rigging Libor, the rate at which banks lend to each other.

Royal Bank of Scotland also faces a £500m fine for manipulating the key interest rate. HSBC and Standard Chartered have also fallen foul with regulators over the way they do business overseas.


dailyalternative | alternative news – British banks are not too big anymore to fail – bit too late for that!

via PressTV – Treasury chief: British bankers are not too big anymore to fail.

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