City workers favour small banks

Two thirds of financial services professionals believe that any bank considered “too big to fail” should be forced to shrink, according to research released today. The Securities & Investment Institute (SII) found that 67 per cent of respondents thought banks’ size should be curbed, to combat moral hazard. The findings back up Bank of England governor Mervyn King, who said earlier this year that any bank considered too big to collapse was simply too big.