Monday, September 5, 2011

U.K. to Force Banking Separations

Monday, September 5, 2011

British banks will be forced to "ring-fence" their retail divisions from their investment-banking businesses, maintaining them as separate operations, in a move the U.K. government believes will make the sector safer, Treasury chief George Osborne will announce Wednesday.

The plan had been forcefully opposed by banks including Barclays PLC, Royal Bank of Scotland Group PLC and HSBC Holdings PLC, which had argued it would increase costs, reduce lending capacity and make lenders more vulnerable to financial shocks.

A person familiar with the matter said Mr. Osborne will also say that retail banks will need larger capital buffers to protect them ...

Powered By | Full Text RSS Feed | Amazon Plugin | Settlement Statement | WordPress Tutorials

View the original article here


Post a Comment