Cable calls for break up of banks
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Liberal Democrat shadow chancellor Vince Cable has set out the key pillars of the Liberal Democrat economic manifesto, which calls for the breaking up of banks.
He says now that President Obama has taken on the issue of breaking up the banks on his side of the pond, it is time that we do the same in the UK.
He wants to see a modern version of Glass Steagall, separating retail and investment banks.
He says: “Until the banks are broken up, and are able to compete and succeed or fail without UK government guarantees, they should pay an insurance premium – a supplementary tax on bank profits.”
Cable is also calling for a much more varied ecology in the banking industry with local banks; more mutuals including credit unions; a banking arm for the Post Office network to reach the financially excluded; specialist banks to support, with long term finance and new ventures.
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Readers' comments (1)
Don Smith | 26 Jan 2010 10:19 am
The stupidity of man is always so stupid.
NO BANK CAN BE ALLOWED TO FAIL.
A failing bank takes us all down with it.
Banks are not like factories that can be allowed to fail as some other factory will easily take its place.
Bank CONTROL THE ECONOMY - NO BANK = NO ECONOMY.
The bailout was unfortunate but look at the alternatives.
Bank fails, bank has to repay creditors, bank calls in its loan, bank sells YOUR house, YOUR business and YOUR car.
Oh yes thats a much better system.
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