Matt Scuffham and Steve Slater write:
Britain could force banks to fully separate their retail operations from riskier areas if lenders fail to implement a “ring-fence” that sufficiently safeguards taxpayers or improves behavior, the architect of the plan said on Monday.
The Independent Commission on Banking, chaired by Sir John Vickers, recommends that UK banks “ring-fence” their retail operations to protect customers from riskier investment banking activities.
Andy Haldane, the Bank of England’s financial stability director, commented last week that ring-fencing would only work if the retail operations have a separate management, pay structure and balance sheet.
via Bank break-up an option if ring-fence fails: Vickers | Reuters.