Ed Miliband Calls for Reform of the Banking System
July 9, 2012
The Fresh Outlook
Ed Miliband set to call for a “root and branch” reform of the banking sector following the Libor rate-fixing scandal.
In a speech today at the London headquarters of the Co-operative Bank, Mr Miliband will say how he believes a move from “casino banking” to “stewardship banking” is needed. He will say how the “big five” of Barclays, Lloyds, Santander, HSBC and RBS should be forced to sell up to 400 branches. As Lloyds Bank is already in the process of selling 650 branches to the Co-Operative Bank, this will mean that the number of branches being sold is over 1,000. This plan will enable two new “challenger banks,” which will be run by the private sector, to offer lower charges and more choice.
Labour leader Mr Miliband will say: “It will mean root-and-branch change for our banks if we are to deliver real change for Britain, if we are to rebuild our economy so it works for working people, and if we are to restore trust in a sector of our economy worth billions of pounds and hundreds of thousands of jobs to our country.”
Mr Miliband will also support EU proposals to set a maximum 1:1 ratio of bonus to pay and publish a report on Labour’s case for a British investment bank to help the business sector.
By Ellie Stansfield
[Image courtesy of Labour]