Yesterday the Coalition Government announced a separation of retail banking from risky investment activities. This followed on from an announcement by Vince Cable who told the BBC on Sunday that the Government would accept the Vickers report in full and he is quoted as saying “we are going to proceed with the separation of the banks”.
Labour spokespeople are saying the reform should be implemented in full and not watered down however, it was the mistakes of a Labour Government when they were in power which has created the need for these reforms and the Coalition Government are left to clean up Labour’s economic mess.
The Vickers commission was set up by the Coalition Government to reform the structure of Britain’s banks. It is a vital part of the response to Labour’s financial crisis which caused the largest post-world war two recession at a cost of billions to the British tax payer. The Liberal Democrats’ longstanding criticism of banking is reflected in the Vickers commission.
All in all it will separate the risky side of banking from the retail sector of banking and ultimately put better safety nets in place for the British tax payer and to make sure a bailout by taxpayers on the scale seen under the previous Labour Government doesn’t happen again.
Wealth inequality is fundamental to Liberal politics and Nick Clegg is right to attack bankers on over their colossal bonuses. Just like last year, there will be a firm stance on rewards for failure and irresponsible payments in the banking sector.