'No silver bullet' for 'too big to fail' banks - FSA

The "too big to fail" banks issue needs a multi-pronged attack to cut interconnectedness, narrow banking, and by standardise the way large cross-border groups are treated, Turner says. But controversy remains over the issue of narrowing banking and what to do about the risks created by cross-border operations. ‘Narrow bank' proposals seek to divorce utility banking from casino banking. Lord Turner argues there should be a distinction between commercial banks and proprietary trading, which could be achieved by strict capital requirements and the use of distinct resolution and recove...