War of words looms over bank reform

Monday 19 November 2012 11:00 GMT
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Lord Turner will today tell the Parliamentary Commission on Banking Standards that the banking bill must enforce a "hard" ring-fence on banks' retail and small business operations to protect them in the event of a bank collapsing.

The outgoing chairman of the Financial Services Authority will appear before the commission as it enters its final week, with a report due by the end of the year.

Any call by Lord Turner for stricter regulation of the banks is strongly resisted by the Association of British Insurers, which will say in its submission to the Parliamentary Commission this week that political interference is making UK banks "uninvestable". The ABI's members are among the biggest investors in the banking sector.

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