Britain confers new powers to regulators to break up banks

The UK government has given new powers to regulators which can now break up banks if they fail to protect their retail operations from their riskier investment arms.

The government is cautious keeping in mind the happenings of past when risky investments undermined banks’ stability in 2008, leading to taxpayer bailouts of two big UK banks. The new measure gives regulators the power to force a complete separation of a lender’s retail business from its investment banking.

Month: Current Affairs - February, 2013