Labour conference: Miliband threat to break up banks

[dipsydoodle]

Labour leader Ed Miliband has said that if banks do not separate their retail and investment arms, a future Labour government will "break them up".

There needs to be a return to the "best traditions of British banking", Mr Miliband said, where "banks serve the customer" not international markets.

Recommended ring-fencing of retail from investment banking had been watered down by the government, he said.

The Treasury said it was "undertaking radical reform" of the banking system.

http://www.bbc.co.uk/news/uk-politics-19775686

[littlemissmartypants]

1. I

approve this message. Excellent Catch! Thank you!

[jody]

2. What is the position of David René de Rothschild.on this issue? nt

[LeftishBrit]

7. Not really relevant, as this is about the UK, not France

It's more relevant what Mervyn King, David Nicholson, Win Bischoff, whoever replaces Diamond Bob at Barclays, etc., think about it.

My educated guess is that they won't like it - which means that a Miliband government would have to be tough about it.

[jody]

10. Isn't he chairman of N M Rothschild & Sons Limited with headquarters in London, at New Court,

St. Swithin's Lane?

Their presence in the UK and because they are among the very largest banking groups in the world suggests they have an interest in the OP's cited activiy.

[T_i_B]

3. One policy there is a definite clamour for.....

Is a total repeal of lala Lansley's NHS "reforms". It would be highly desirable, but Ed Miliband is yet to commit to this.

[dipsydoodle]

5. He said yesterday in answer to a direct question

that Labour would not commit to rescinding anything at all which the current government has done.

[LeftishBrit]

6. I agree! They'd better get rid of that total mess.

[LeftishBrit]

4. Great idea - but whether they will have the guts to do it when the time comes is perhaps another

matter.

The banking industry has become a sort of Frankenstein's monster, and it will be hard for anyone to reverse its power.

[T_i_B]

8. Financial services are the main industry keeping the UK going

No government is going to want to kill the goose that lays the golden egg.

[LeftishBrit]

9. This was in a way what I was saying

Policies of past governments have created a situation where financial services ARE a goose that lays the golden egg.

The UK used to be a country with real and diverse industries. But Thatcher destroyed the industries in the cause of destroying the unions, and Blair did nothing to reverse the trend.

Perhaps The Sorcerer's Apprentice is a better metaphor than Frankenstein; mismanagement resulted in what started as a harmless situation (a financial industry has its place among many other industries) getting totally out of control. And now it's virtually irreversible. But some leaders may be able and willing to regulate the industty more than others.

[fedsron2us]

11. I think that egg had gone rotten by 2008-2009

The scale of government direct support to RBS and Lloyds TSB HBOS during their bailout was £37 billion. When indirect assistance via QE is added the figures go into the stratosphere. In terms of generating taxes for the Treasury the Oil industry has contributed as much in corporate taxes as the financial sector in recent years. The reality is that financial services have been a drag on the UK economy for quite a few years now.