Prelude to 12th September, will the Banks stop scaremongering?…
Heated debate is to ensue with the Industry laying down their views before publication of the ICB‘s report to the Government.
None seem wanting to give way. The CBI have pitched up lambasting the predicted ‘ring fencing’ as “barking mad”. Meanwhile and hot on their tail, the BBA [The British Bankers’ Association] continues to see measures undermining the recovery.
Vince Cable, the Business Secretary has put down the claims. “Louder and louder voices” were being raised among some of the big British banks giving warning that regulatory change in Britain would put the recovery at risk.
Come September 12th, The Independent Commission on Banking is expected to recommend the separation of retail operations and investment arms of banks.
Speaking to the Daily Telegraph Mr. Cable says the banking sector was using the economic turmoil to argue against regulatory change.
Assuming the changes expected are announced, the belief is that it would stop the likelihood of ‘bailouts’ repeating themselves.
The struggle then would be what type of accounts would prevail. Banks are known to want the end of the ‘free’ Basic Account, millions of customers face uncertainty.
The war on words started with the BBA publishing a series of blogs by their Chief Executive, Angela Knight last week [see my previous post for the David Jones comment]. And expect this to run and run.