Cable could introduce bank firewalls

Katrina Lloyd
clock

Business secretary Vince Cable has conceded the UK's biggest banks may not be split along "crude lines" but instead firewalls could be introduced to separate retail and investment arms.

Cable is a fierce critic of the way in which banks such as Barclays, RBS and HSBC run what he calls "casino" investment banking operations, underpinned by an implicit taxpayer guarantee of their high-street banking in the UK, the FT reports. The appointment of Bob Diamond as Barclays' chief executive has infuriated Cable and reopened the debate about the make-up of the UK's banks. Diamond, head of Barclays Capital, will now take charge of the whole bank, including its retail operations. The business secretary said Britain's "universal" banks had to be made safe, but conceded: "Splitti...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Advisers on Iran war: 'My advice goes well beyond just saying don't panic'

Advisers on Iran war: 'My advice goes well beyond just saying don't panic'

‘Clients are naturally concerned’

clock 11 March 2026 • 5 min read
The capacity trap: Why advice firms can't hire their way out of the admin crisis

The capacity trap: Why advice firms can't hire their way out of the admin crisis

'You cannot outrun a broken process by adding more people to it'

Stuart Breyer
clock 10 March 2026 • 3 min read
The enduring value of advice in an era of DIY investing

The enduring value of advice in an era of DIY investing

'The debate is about execution and consistency'

Chris Ball
clock 10 March 2026 • 4 min read