Former Barclays chairman: Bank ring-fence is redundant and should be scrapped
Sir David Walker says ring-fencing is a 'uniquely British policy' which will penalise the UK economy
Sir David Walker has called on the Chancellor to review the legislation surrounding bank ring-fencing, claiming it will simply burden customers with extra costs and harm competition.
Oh, no...competition. Wait, we still have that ?
The former chairman of Barclays, writing in a personal capacity for The Telegraph, brands ring-fencing "uniquely British" which could lead to some banks moving operations overseas.
I'm thinking of a word...begins with 'N'...
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It has been estimated ring-fencing will cost UK banks some £2.5bn, with annual operating costs of approximately £4bn.
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he argues that developments since Sir John Vickers' Independent Commission on Banking - which first suggested UK retail banks be ring-fenced from the commercial and investment banking operations of their parents - first suggested the move, due to come into force from 2019, the landscape has changed.
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"Ring-fencing’s role in effective resolution – crucial to protect the taxpayer – is also now redundant as banks adopt comprehensive standalone mechanisms as part of the EU Recovery and Resolution Directive."
Yes, the banks that had to be bailed out by government after nearly crashing the global economy should be trusted to gamble with ordinary people's money.
Says a banker. Former chairman of Barclays. Yes, that Barclays. Assholes.
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