Welcome to our new website! Let us know what you think..

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Carney shoots down Miliband's bank reform proposals

Carney shoots down Miliband's bank reform proposals

Bank of England governor Mark Carney has all but torpedoed Labour leader Ed Miliband’s plans to shake up the banking sector.

Speaking before the Treasury Select Committee, Carney (pictured) said plans to break up the big banks would not necessarily create competition and branded bonus caps ‘crude’.

Miliband is set to announce his party’s economic policies today and was expected to want to appear tough on big business. However, Carney dismissed his plans regarding the banks, saying: ‘Just breaking up an institution doesn’t necessarily create a more intensive competitive structure.’ He also pointed out that any plans to prevent a bank having more than a 10% share of retail deposits, which has been taken from US law and mooted by Labour, risked making banks more likely to resort to wholesale funding, one of key systemic risks at the heart of the financial crisis.

When asked about the EU’s proposed 200% bonus cap, Carney branded the move ‘crude’ and ‘absolutely’ the wrong approach. Labour has been calling on the government to act to  curb RBS’s bonus payouts.

Leave a comment
Citywire TV
Play Gervais Williams: the real reason to worry about Quindell

Gervais Williams: the real reason to worry about Quindell

Citywire AA-rated manager Gervais Williams has argued that sentiment is the true danger to Quindell.

Play AA-rated Lofthouse: 'maverick' tobacco settlements won't stop M&A

AA-rated Lofthouse: 'maverick' tobacco settlements won't stop M&A

Henderson International Income trust manager Ben Lofthouse shares his thoughts on recent developments in the tobacco sector in this video.

1 Play Renewable energy: what I found on my solar farm trip

Renewable energy: what I found on my solar farm trip

Renewable energy is attracting a lot of investor interest, so I headed to the UK's largest solar farm to find out more.

Your Business: Cover Star Club

Profile: Quilter Cheviot boss Baines sees more consolidation ahead

Profile: Quilter Cheviot boss Baines sees more consolidation ahead

Nineteen months on from the merger of Quilter Cheviot chief executive Martin Baines says the deal is now paying dividends.

Wealth Manager on Twitter