LONDON Nov 12 Britain could force banks to
fully separate their retail banks from their riskier areas if
lenders fail to implement a "ring-fence" that sufficiently
safeguards taxpayers or improves behaviour, the architect of the
plan said on Monday.
John Vickers, who headed a commission that said domestic
retail businesses should be shielded or "ring-fenced" from other
operations, said threatening banks with a full break-up should
help ensure the plan works. Britain is discussing how best to
implement Vickers' proposals.
"I believe the ring-fence will work. With the legal and
other safeguards it will work, including on the cultural
aspect," Vickers told a panel of UK lawmakers assessing
standards in banking, when asked if a risky culture in
investment banking could filter across a bank if there was not a