Banking bosses divided over Tory plans for sector reform

BANKING bosses are divided over George Osborne’s plans to overhaul regulation of the industry, City A.M. has learned.

The shadow chancellor met twelve banking bosses for lunch yesterday for what one source at the meeting described as a “full and frank” exchange of views.

Those in attendance included HSBC chairman Stephen Green, Barclays chairman Marcus Agius, president of Bank of America Merrill Lynch Europe Jonathan Moulds, and vice-chairman of Goldman Sachs Michael Sherwood.

Osborne used the lunch to reiterate his support for some kind of global insurance levy on banks, a proposal that failed to garner support among several of the bankers in attendance.

Senior representatives from Nomura, Citigroup, Morgan Stanley, BNP Paribas, JP Morgan, Deutsche Bank, Credit Suisse and UBS were also at the lunch, which was hosted in the Canary Wharf offices of Clifford Chance by senior partner Stuart Popham. Mayor of London Boris Johnson was also in attendance.

Sources said the gathering of so many senior banking executives – which was organised with just two week’s notice – was highly unusual, representing growing concerns over Osborne’s plans for the banking industry.