14 July 2011

Their hand in our pocket

Surprise, surprise! As The Independent reports:

Britain's banks have lined up to oppose reforms proposed by the Government's Independent Commission on Banking (ICB).

In submissions to the ICB, the "big four" banks – Barclays, HSBC, Royal Bank of Scotland and Lloyds Banking Group – raised objections or tried to buy time on the ICB's proposals.

The key bone of contention is the ICB's call for ring-fencing of retail and investment banking to protect economically vital functions from trading and other volatile activities.

Well they would object, wouldn't they. They prefer the present regime, where the government (and the taxpayer) is obliged to step in and bail them out when they get into trouble. Casino banking might not be as much fun if the casino banks had to face the consequences of their gambling.

No comments: