(28 September 2015 – Britain) Britain’s largest banks are in a position to declare victory in their fight to stop one of the government’s major financial sector reforms.
Senior banking officials believe they have persuaded Mark Carney, governor of the Bank of England, to ease key details of the “ring-fencing” plan to split their retail operations from their riskier investment arms.
With the aim to protect the broader economy from a blow-up at one of the big banks, the scheme was drawn up by a commission headed by economist John Vickers. Its. It was proposed that lenders should create separate, independent boards to oversee the divisions by 2019.
However, the banks have argued that this could lead to reckless decision-making by the independent boards, as well as undermine the accountability of directors to investors.
It is understood that Carney will start a consultation on the new rules mid-October.