UK Bank Split Law Needs Revisions, Watchdog Says

Law360, New York (March 11, 2013, 2:52 PM EDT) -- Proposed U.K. legislation designed to put up a barrier separating a bank's commercial and investment units may not be strong enough to discourage institutions from engaging in risky trading and needs further revision, a British parliamentary commission said Monday.

According to the Parliamentary Commission on Banking Standards report, the British government had taken on a number of the commission’s recommended changes before introducing the banking reform bill Feb. 4, including the key step of giving a regulator the power to split up banks.

The government, however,...
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