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BoE's Tucker contradicts King on carving up banks

The deputy governor of the Bank of England Paul Tucker contradicted his boss yesterday when he poured cold water on governor Mervyn King&rsquo;s idea of splitting up big banks in a bid to ensure financial stability.<br /><br />Tucker said: &ldquo;I do not much like the notion of a list of &lsquo;systemically important firms&rsquo; because, as a previous generation of policymakers taught us, what proves to be systemic depends so very heavily on the circumstance.&rdquo;<br /><br />Tucker joins Prime Minister Gordon Brown, chancellor Alistair Darling and the Financial Services Authority who have all come out against King&rsquo;s support for the idea of carving up retail banks from more risky activities like proprietary trading. <br /><br />Tucker also said anaemic UK growth could see inflation undershooting the two per cent target and that the outlook remains uncertain.