Tag Archives: independent commission on banking

In other news… Thurso on banking, Ward on immigration, Swales on G4S & other stories

Here’s a round-up of stories we haven’t had time to cover on the site this past few days…

John Thurso MP to lead banking inquiry (John O’Groat Journal)

CAITHNESS, Sutherland and Easter Ross MP John Thurso has been elected to lead an inquiry into how the banking system is run. The Lib Dem politician has been chosen as one of five representatives who will

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The Independent View: The banking sector needs radical reform but too many cures will kill the patient

For seven days before Christmas it has been an incredibly busy day for the financial services sector. The Parliamentary Joint Committee on the Draft Financial Services Bill has produced its wide-ranging report into regulatory reform; the FSA has published its Mortgage Market Review consultation; and, last but not least, the Treasury has published the Government’s response to the Independent Commission on Banking.

At least the latter was well leaked – what isn’t these days? – and gave me time to think about the ICB.

The ICB is actually something quite amazing, not to mention something entirely Lib Dem.

Sir John Vickers was given …

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Vince Cable – “we’re reforming UK’s banks, and we’re getting on with it”

Liberal Democrat Business Secretary confirmed yesterday that the Government would accept, in full, the recommendations of the Independent Commission on Banking (ICB) Chaired by Sir John Vickers (see this video to see for yourself).

Anticipating Chancellor George Osborne’s formal announcement today, Vince told the BBC’s Andrew Marr that the  separation of retail and investment banks –  ‘something I and the Liberal Democrats have pushed on for a long time’ – will go ahead, indicating that the ‘angry heckling by banks’ (Marr’s words) had failed to blow the Government off-course.

Indeed Vince went as far as  to …

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Dick Newby writes… Banking – a Lib Dem win

As I write this, the top headline on the BBC online news reads Acclaim for Bank Shake-up Plan. The report states that there is broad support for the Vickers’ report’s proposals to separate domestic retail banking and global wholesale and investment banking operations. This support extends to the Chancellor and the Prime Minister.

What the BBC doesn’t point out is that this a complete victory for the Liberal Democrats – particularly Vince Cable. When the banking crisis broke , we quickly decided that we had to ensure that the state couldn’t be put in the position again where it …

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Monday: politicians and bankers learn their possible fates

A quirk of the political calendar means Monday sees both politicians and bankers learn of their possible future fate. For English MPs it is when they get embargoed copies of the Parliamentary Boundary Commission’s draft proposals, which get published on Tuesday. Monday is also the day when the Vickers Commission publishes its banking reform recommendations.

There is a widespread expectation in Whitehall that the Vickers Commission will recommend isolating retail banking from other banking activities, but without demanding that companies be split up. Internal firewalls and the like will be demanded instead.

It is also widely expected that the Vickers Commission will …

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Opinion: Vickers report on banking does not go far enough

Naomi Smith and Prateek Buch of the Social Liberal Forum write about the Vickers Commission on Banking…

At Lib Dem Spring conference in Sheffield last month, delegates overwhelmingly supported the Social Liberal Forum (SLF) motion Tougher Action on Banks and Bonuses. The interim report published recently by the Vickers Commission on Banking went some way to addressing the problems within the industry , but as we predicted in our speeches to the SLF motion, falls far short of Liberal Democrat policy which calls for:

  • A break up of banks deemed ‘too big to fail’ into smaller, safer

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The Independent Banking Commission publishes its interim report

Via the BBC:

UK banks’ retail operations should be “ring-fenced” from their investment banking arms, the Independent Commission on Banking has recommended.

However, in its interim report the commission stopped short of recommending the two should operate as separate entities.

It said more competition was needed in retail banking, including the sell-off of more Lloyds branches.

The commission’s final recommendations will be published in September.

Robert Peston adds,

The big banks will claim that putting their retail banks into subsidiaries would impose significant extra costs on them – because it would force them to raise and retain more capital (which is expensive), and it

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Independent Commission on Banking threatened mass resignation to make Osborne back-off

Matthew Oakeshott’s departure as a Liberal Democrat spokesman for criticising the ‘Project Merlin’ deal with the banks over bonuses and the like may have got the headlines, but the real story is revealed by Anthony Hilton in the Evening Standard – all the members of the Commission threatened to resign in protest at government interference with their work.

He writes:

The Government offered to emasculate the Independent Commission on Banking as it tried to strike a deal on bank bonuses a few weeks ago. I am told it backed off only when Sir John Vickers, chairman of the inquiry, and his entire committee, Clare

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Bank levy introduced

It’s January, so the government’s bank levy has come into force. The basic details are that it is a o.05 per cent levy on bank balance sheets, but rises to 0.075 per cent in 2012 and the details of how it works are designed to encourage banks to rely more heavily on more stable sources of funding in the future.

Expected to bring in £2.5 billion a year, the revenue is pretty small compared to the estimated costs of the financial crisis overall (even if future sales of the government’s bank shareholdings are factored in). However, at a time when …

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  • User AvatarAndrew T 16th Jul - 4:53pm
    It just doesn't sound very Liberal. Many of our own voters don't believe it's the government's responsibility to provide education, healthcare, jobs and homes. There's...
  • User AvatarLorenzo Cherin 16th Jul - 4:47pm
    Thanks so much Catherine, appreciate your response. We need to understand the connection between the arts and humanity, the potential for the one, involved with...
  • User AvatarKatharine Pindar 16th Jul - 4:36pm
    Sue, t is the way we look at the other evils of society that makes us distinctive, I suppose, with a right to claim distinctiveness....
  • User AvatarCatherine Jane Crosland 16th Jul - 4:33pm
    Thank you for this article, Lorenzo, and good luck with this project. Humanity needs the arts more than ever, right now.
  • User AvatarPhil Beesley 16th Jul - 4:28pm
    I think it would be better if young people made up their own minds.
  • User AvatarKatharine Pindar 16th Jul - 3:51pm
    No, John, not compromise - distinctiveness. True, a decade ago we had 57 MPs where now we have eleven. But in the Nineties Labour had...