Osborne backs bank break ups for those who fail to reform
George Osborne has backed the break-up of banks that fail to adhere to new banking reforms.
George Osborne has announced that the UK's biggest banks will be broken up if they fail to abide by new rules to ring-fence risky investment operations from High Street outlets.
The chancellor said taxpayers are unhappy at how such institutes have behaved and stated they will never again be expected to bail them out.
Mr Osborne made this speech on the same day the government introduced its Banking Reform Bill in parliament, which aims to prevent the cavalier approach banks took in the lead-up to the credit crunch, while also allowing customers to switch bank accounts to a rival within just one week.
The politician referred to the 2008 crisis, which saw the government use £65 billion in taxpayer money to prop up Lloyds Banking Group and the Royal Bank of Scotland (RBS).
At 16:05 GMT, Lloyds and RBS lost significant ground on the London Stock Exchange, with Lloyds shedding 2.4 per cent to 50.37p per unit, while RBS retreated by 3.1 per cent 329.80p per unit.
Learn about the markets and CFD trading at City Index.
Latest market news
Yesterday 01:23 PM
Yesterday 06:01 AM
April 18, 2024 11:27 PM
April 18, 2024 04:46 PM