Every morning, from his desk by the bathroom at the far end of Royal Bank of Scotland Group Plc’s trading floor overlooking London’s Liverpool Street station, Paul White punched a series of numbers into his computer.
Richard Sharp, a member of the Bank of England’s Financial Policy Committee, said the so-called London Whale losses at JPMorgan Chase & Co. illustrate the financial-stability risks posed by firms “too big to manage.”
American Robert Diamond once mocked “Little England” regulators for failing to match his global ambitions. He sparked a power shift that cost him his job and changed the way the world’s top financial center is governed.
The British government commission that convenes tomorrow is unlikely to propose breaking up the country’s biggest banks after three of the five biggest lenders threatened to leave the country rather than accept change.
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.
As the credit crisis mounted in 2008, Stuart Gulliver moved from his executive office on the 42nd story of HSBC Holdings Plc ’s London office to the trading floor on the fourth so he could oversee his employees directly.