Banking reform: Could plans be scuppered by coalition divide?

31st August 2011

Mr Cable was quoted in The Guardian as saying that the Liberal Democrat and Conservative parties were on 'common ground'

The controversial minister had accused banks of using the economic turmoil in Europe to try to derail banking reform, leading to speculation of division with his Conservative party colleagues.

The Independent Commission on Banking, will publish its report on 12  September, the banking report is expected to recommend a ringfencing of retail banking.

The government is not obliged to follow the report, which is being compiled by Sir John Vickers.

Mr Cable told the Times that "louder and louder voices" were being raised among some of the big British banks warning that regulatory change in Britain would put the recovery at risk.

The Financial Times (paywall) reported Mr Cable as saying the banks' tactics were “disingenuous in the extreme”.

It added that "Mr Cable and George Osborne, chancellor, were at loggerheads over the speed with which Sir John’s banking reforms should be implemented. The business secretary wants action as quickly as possible".


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