U.K. banks shouldn’t be restricted from proprietary trading in a way similar to the U.S.’s so- called Volcker rule because it would be too complicated to police, said John Vickers, chairman of Britain’s Independent Commission on Banking.
Chancellor of the Exchequer George Osborne will back proposals to erect firebreaks around the consumer-banking units of British banks as he seeks to protect taxpayers and depositors during future financial crises.
Full implementation of international and U.K. regulations, including plans to insulate consumer lenders, may cut the implicit government guarantee of the banking system by about 80 percent, former Bank of England Chief Economist John Vickers said.
U.K. banks need to insulate their retail operations from risky investment-banking activities to guard against economic panics, said John Vickers, chairman of the country’s Independent Commission on Banking.
Chancellor of the Exchequer George Osborne warned lawmakers not to undermine support for legislation to make U.K. banks safer, urging them to stick with plans to erect firewalls around lenders’ retail units.
Chancellor of the Exchequer George Osborne said former Bank of England Chief Economist John Vickers will lead a panel on the future of banking, as he prepared to hand back powers over bank supervision to the central bank.