Banks need to be broken up, says Osborne - Spear's Magazine

Banks need to be broken up, says Osborne

George Osborne, the UK’s shadow chancellor, has argued that Britain’s banks may need to be broken up to avoid them threatening the stability of the economy in future, according to the Daily Telegraph.

George Osborne, the UK’s shadow chancellor, has argued that Britain’s banks may need to be broken up to avoid them threatening the stability of the economy in future, according to the Daily Telegraph.

The shadow Chancellor suggested that the country needs “smaller banks” and urged the Government to consider using its shareholdings in several banks to ensure that banks emerged from the current crisis in a more manageable form.

The Conservatives’ recommendation may mean that British banks return to more traditional high-street business rather than competing in international financial markets.

There has been intense criticism of Royal Bank of Scotland’s expansion over the past few years. RBS now has assets around the world worth more than the value of the British economy – after the bank more than doubled in size in just two years.

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