Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Labour to unveil banking break-up plans

Labour to unveil banking break-up plans

Labour leader Ed Miliband will promise a ‘reckoning’ as he sets out plans to break up high street banks in a speech today.

In a speech to be given to the University of London today, Labour leader Ed Miliband (pictured) will call for ‘significant’ numbers of bank branches to be sold off, according to reports.

‘We are not asking whether existing banks might have to divest themselves of a significant number of branches. We are asking how we make that happen. After decades of banking becoming more and more concentrated, Labour will turn the tide,’ he will say.

Under Labour plans, each bank’s market share of personal accounts and small business lending, would be limited to a set maximum level. Banks would be made to sell branches or step back from mergers and acquisition deals if they went over the limit.

Miliband is expected to compare the UK to the US where laws already exist to prevent a bank getting so big it dominates the market.

‘If we carry on as we are, we will end up stuck with the same old banks dominating our high street: the old economy…We will follow the same principle for Britain and establish for the first time a threshold for the market share any one bank can have of personal accounts and small business lending.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Gutteridge: what's behind the second oil crash?

Brewin's Gutteridge: what's behind the second oil crash?

This week Brewin Dolphin's research head talks to Will Riley, co-manager of the Guinness Global Energy fund, about what next for oil.  

Play AA-rated Bullas: what drove my UK small cap outperformance

AA-rated Bullas: what drove my UK small cap outperformance

AA-rated Richard Bullas has quietly been making a name for himself at the helm of the Franklin UK Smaller Companies fund.

Play Sector spotlight: how Harwood's Philbin is playing emerging markets

Sector spotlight: how Harwood's Philbin is playing emerging markets

Emerging markets have been a rollercoaster for investors, but amid the doom there have been have been bright spots, such as India. 

Your Business: Cover Star Club

Profile: CHI's bond supremo on liquidity and bond risk management

Profile: CHI's bond supremo on liquidity and bond risk management

'Some people have been extremely complacent about rate rise risk. Myself, I wish they would just get on with it.'

Wealth Manager on Twitter