UK bank break up mooted

24/09/10 15:09 CET

economy

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Britain’s banks could be broken up with high street operations being separated from investment banking.

That is one option being considered by the Independent Commission on Banking.

The ICB was appointed three months ago by the UK government to assess the structure of the industry in the wake of the financial crisis.

In its first report the ICB said it would look at separating companies’ retail and investment banking divisions and imposing limits on proprietary trading and investing, along with looking at boosting competition and market infrastructure reform.

“The list is not intended to be exhaustive and … the commission has not moved towards any particular options at this stage,” it said in a statement.

Despite much strong rhetoric from politicians in recent weeks against investment bankers, many industry members and analysts have said that it is unlikely that British banks will ultimately be forced to break up.

More about: Bank of England, Economy, United Kingdom

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