Skip to content
Subscriber Only

Osborne to Pledge U.K. Bank Legislation for Vickers Plan by 2015

Chancellor of the Exchequer George Osborne will pledge today to pass laws by 2015 to force banks to separate investment and consumer businesses, giving full backing to the recommendations of the Independent Commission on Banking.

Osborne will promise that new rules will be operational no later than 2019, as he seeks to solve what he has called the “British problem” of having to use taxpayers’ money to bail out the financial sector. The solution proposed three months ago by the panel led former Bank of England Chief Economist John Vickers is for banks to build firebreaks between their consumer and investment operations and boost the amount of loss-absorbing equity and debt they hold to between 17 percent and 20 percent.