THE British are breaking up their “too big to fail banks” April 11th, 2011 |
While Americans get little more than fake legislation from our millionaire officials in Congress to make it look like they are doing something about the stranglehold that bank monopolies and Wall Street financial institutions have on the public, the British government is actually doing something about it. But don’t expect to hear too much of this news in the USA corporate owned media.
Lloyd’s has already been ordered to sell 600 branches to reduce its dominance and now they are being told to sell more. Lloyd’s Banking Group should sell more branches to reduce its dominance on the high street and all banks should be forced to ring-fence their savings operations under proposals announced on Monday by the Independent Commission on Banking.
But the commission, set up by the coalition last year and chaired by Sir John Vickers, has ruled out some of the more radical proposals, including a complete separation of investment banking operations, dubbed “casinos” by Vince Cable in the run-up to the election. Now business secretary, Cable had called for this separation to take place but the commission has concluded this would be too costly for the sector. Instead, the commission suggests that the ring-fenced retail banking arms should be forced to hold more capital: 10% rather than the 7% demanded by international regulators for the entire bank. But it also sets out the case that 10% should become the “international standard” for systemically important banks.
COMMENT; “This is a great show of what can be done to mitigate the bleeding in the Financial Sector. It is a show of what can be done if the Government and the Heads of the biggest banks can get together and carry out dire austerity programs, even at the highest levels, ultimately resulting in an Economic rebound!” Hotdogfish
- Vickers report vindicates government’s banking review, says Osborne (guardian.co.uk)
- Lloyds may sell 1,000 branches (thesun.co.uk)