McFall backs motion to split banking units

TREASURY committee chairman John McFall yesterday threw his weight behind a House of Commons motion calling for banks&rsquo; retail and investment banking &ldquo;casino&rdquo; operations to be split.<br /><br />Labour MP McFall &ndash; noted for his scathing attacks on bankers&rsquo; behaviour during Treasury committee sessions &ndash; seconded an early-day motion tabled by Alun Michael MP, the chair of the Christian Socialist Movement (CSM).<br /><br />Michael, who is leading the campaign, said he was calling for immediate action to &ldquo;stop the banks gambling with our money&rdquo;, adding that separating bank activities was &ldquo;not just an economic issue but a moral one&rdquo;.<br /><br />McFall, also a member of the CSM, said: &ldquo;An ever-present danger exists when banks combine this casino banking with traditional retail deposits which are rightly guaranteed by the taxpayer.&rdquo;<br /><br />And he warned that losses in investment banking could potentially lead to a situation in which &ldquo;UK taxpayers would have yet again to pump in tens of billions of pounds to rescue such a combined bank&rdquo;.<br /><br />&ldquo;We cannot allow this to happen again,&rdquo; he added.