British bank reform

British bank reform

British bank reform. Of course they are. The banks are larger than before the crisis and if you ask them, they are being treated too harshly since they are the saviors of the economy. The problem is that they're looking for a new angle to make money. They can't justify the bloated payouts with traditional buying and selling stocks and need a new bubble that can be exploited in the short term. For the banks it's all about short term games so it's no surprise that they want to be left alone to gamble. If it was their own money it might be one thing, but it's not. They want to gamble on everyone else's money and risk another downturn all for the hope of getting a big bonus.

Fortunately the UK business secretary Vince Cable is sounding the alarms. Whether the Tories are listening is another story.

"It is disingenuous in the extreme to use the current context to argue against reform. Banks are in a way trying to create a panic around something which they know has got to happen," he said.

Cable has long favoured the separation of retail and investment banking. He added: "The governor of the Bank of England and many other people have been arguing that we have to deal with the 'too big to fail' problem. We can't have big global banks with balance sheets bigger than British GDP underwritten by the taxpayer; this can't go on and it has got to be dealt with."

The business secretary also said that he did not expect another 2008-style meltdown in the banking sector, but acknowledged that difficulties could still lie ahead for the British economy.

Source: americablog