Cable: carve up retail and investment banking in UK

VINCE cable yesterday called for British banks to be broken up, in a move that will further alienate him from the City.

He said he would use the crisis to transform the economy into a system that was beneficial to the whole country and “not just the Square Mile”.

He distanced himself from the two main parties by insisting Britain should go it alone in separating retail and investment banks, regardless of what other countries do.

In a speech to think tank Demos he said: “Until the banks are broken up, and are able to compete and succeed or fail without UK government guarantees, they should pay an insurance premium – a supplementary tax on bank profits. We are too dependent on the City of London rather than the talents of the rest of Britain.”