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

Angela Rayner resigns after ethics report finds warnings ignored on tax advice

Angela Rayner resigns after ethics report finds warnings ignored on tax advice

Following investigation

Sahar Nazir
clock 05 September 2025 • 2 min read
What will cryptocurrency regulation mean for financial advice?

What will cryptocurrency regulation mean for financial advice?

‘Regulation doesn’t automatically make something a sound investment’

Isabel Baxter
clock 05 September 2025 • 8 min read
Deputy PM Rayner remains in post after £40k stamp duty error based on tax advice

Deputy PM Rayner remains in post after £40k stamp duty error based on tax advice

Deputy PM refers herself to ministerial standards adviser amid ongoing scrutiny

Sahar Nazir
clock 04 September 2025 • 2 min read