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Vince Cable today signalled he is open to fresh ideas on how to reform so-called “casino” banks — the investment arms of high street banks.
The Business Secretary conceded there may be “better ways” to reduce risk in the system than his long-standing policy of breaking them up.
“But I think the key point is that although the banking crisis has slipped back into the background we still have a problem where our major banks ... are underpinned by the taxpayer, they are potentially a risk and we have to make them safe.”
Tensions exist between him and Chancellor George Osborne over the issue.
A banking commission was launched in June to recommend proposals in an attempt to avoid a dispute.
Mr Cable is known to be uneasy about the appointment of Bob Diamond as chief executive of Barclays.
Speaking on Radio 4, he declined to criticise the appointment but said it highlighted the policy dilemma of “casinos and traditional banks” being combined.
“It isn't my job to appoint the head of a private bank,” he said. “I think it does illustrate the wisdom of the Government's decision to set up this banking commission to look at the structure of banks.”
Reader views (11)
It's got nothing to do with the government in general and Vince Cable in particular. Barclays went through the crisis without a penny of government money. It's up to the shareholders to decide if Diamond is worth the cash.
- Paul, London, 09/09/2010 09:12
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I would like to know why our Governments allow the Bankers to set their own wages and Bonuses ? I have had Bank shares for over 20 years and have only been asked once to vote on this matter.It is a fact Bank Directors are in charge not the Shareholders.
- stan white, leeds uk, 09/09/2010 08:12
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vince take that silly grin of your face and start to earn you over inflated salary. its all talk ,talk, talk. but not much do . get on with it. action not words.
- james, london.E12, 08/09/2010 20:43
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Mr Diamonds success was all down to John Varley and it really is that simple.
Diamond is a showman but Varley go the results the bank needed.
Varley was shrewd, self deprecating and incredibly smart, Diamond errrrrrr
- Robert Marshall, London, 08/09/2010 17:48
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Vince can say what he wants but the Conservative Party Chancellor George Osborne is more than happy with the banks having the freedom to do whatever they like.
Roll the dice.
- Mike Melbourne, Bedford, 08/09/2010 14:25
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I'm sorry but Bob diamond has been heading up Barclay's most profitable wing for nearly 10 years. So it's hardly a shock and hardly a suprised appointment. Again Vince cable is using the ignorance of the general public to scaremonger when infact if it wasn't for the likes of Barclays we would not have a banking sector in this country let alone a solvent London economy.
- Hansel, London, 08/09/2010 14:19
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Scotty not sure your right. What about the wife of a retailer who was paid a vast dividend but lives in Monte Carlo. Dividends to those that live abroad I believe are not taxed . Similarly dividends from American companies are not taxed there, but here if your report them to the Inland Revenue. Perhaps someone from the Inland Revenue will comment
- alan, England., 08/09/2010 13:44
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ALAN: "There also should be no thing as a non -dom, earn here pay tax here."
pretty clear you don't have the slightest idea of what a non-dom actually is. they do pay tax on what they earn here.
- scotty, london, 08/09/2010 13:09
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We need bankers but anyone who earns 11.5 million should be taxed at 60%. Still leaves them an awful lot of money. Didnt Cameron suggest that no one should earn more than twenty times the lowest salary in an organization before the election. Or if my memory playing tricks? What do your commentators think of an minimum, maximum wage? There also should be no thing as a non -dom, earn here pay tax here. No flying in and out every week adding to global warming. We could also stop hailing as heroes all those sports men who are non-doms.
- alan, England., 08/09/2010 12:53
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Politicians were blinded by greed they should of let the Banks fail, which would of been the deciding example for another generation to heed instead the troughs are inbuilt.
- Bill, HHeath, 08/09/2010 12:30
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The problem is the pejorative use of 'casino'. Much of Barclays Capital's actibity is advisory and raising finance for companies - a perfectly acceptable activity. Even trading financial assets is a necessary to the sale of primary bonds , loans and equities. The big UK failures - Northern Rock, RBS - were caused by business models, poor lending and hubris NOT by trading activities. Lehman's failure was one of liquidity but it has been forgotten that the housing markets in the UK and US are driven by social and political policy, hence the reason that the largest issuers of CDOs and other securities were from US Government institutions, Fannie Mae and Freddie Mac.
- Peter Bench, London, 08/09/2010 12:07
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