Mark Field MP, Cities of London & Westminster
outlines why the UK Treasury should look beyond the Vickers
recommendation and consider a break up of investment banks from
of London's size and global reach continues to make the UK
economy especially vulnerable to turbulence in the financial
markets. In a bid to reduce that vulnerability and avert future
crises, the UK's coalition government, soon after taking the
reins in 2010, tasked an Independent Commission on Banking
(ICB) with proposing reforms to Britain's banking system.
autumn the Commission, under the chairmanship of Sir John
Vickers, released its much anticipated final report. Its
centrepiece was a plan to ringfence domiciled banks' retail
arms from their investment ones.
Based on the notion that what were perceived as the less
risky retail operations required protection from the so-called
casino excesses of investment banking, the reforms aimed