The Great Debate UK

Banks too big to fail, but not too big to change

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Chris Morling, MD money.co.uk- Chris Morling is managing director of money.co.uk. The opinions expressed are his own. -

With Britain’s biggest banks widely tipped to report record profits this month debate over banking reform rumbles on.  But why have proposed reforms ignored the concerns of the retail banks’ disillusioned customers?

“Never again will the American taxpayer be held hostage by banks that are too big to fail.” So said Barak Obama as he challenged Wall Street to fight it out in what boils down to popularity contest.

In essence he’s right of course. Here in the UK the taxpaying public had no choice but to watch open-mouthed as the Treasury and the Bank of England used the public purse to prop up the banking industry’s crumbling edifice.  It shouldn’t happen again, but it’s happened before – and Obama’s measures seem long on fine words but short on detail.

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