FRSGlobal

inCOMPLIANCE, Winter 2010 - Breaking up is hard to do

As the Independent Commission on Banking’s consultation gets underway, James Thomas asks whether the banks will – and should – be broken up. ‘Many industry practitioners, argue that any form of restructuring would be a huge mistake. “From the industry’s perspective it would be best if the Commission did nothing,” argues Selwyn Blair-Ford, head of global regulatory policy at FRSGlobal. “From the taxpayer’s perspective, given the likelihood of the whole banking industry going somewhere else if something unfavourable is recommended, it’s best if the Commission does nothing. And from the consumer’s perspective, if you trust that the new regulatory authorities are going to work, it’s best if the Commission does nothing. The consultation, judging by its terms of reference, doesn’t look or feel like a piece of thoughtful analysis – it looks like a thermometer to test the political temperature to do something that is actually unconscionable.”

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