Ed Miliband: Labour will ‘break up’ banks if they don’t change

Posted by Caroline Howley

Ed Miliband has warned banks that if they refuse to separate their retail and investment arms, a future Labour government could do so by law.

The leader of the opposition warned that the banks need to put an end to ‘the infection of retail banking by the culture of casino banking,’ by 2015, or Labour could force the change through.

Mr Miliband said that the government has watered down recommendations from the Vickers report, conducted in the wake of the financial crisis, which advised ring-fencing retail from investment banking.

The Treasury says it is “undertaking radical reform” of the banking system, and will have all the report’s recommendations in place by 2019.

However, speaking at the Labour Party conference in Manchester, Mr Miliband said that if the changes are not in place by the 2015 general election, the party could force them through. 

He said: "Either they can do it themselves - which frankly is not what has happened over the past year - or the next Labour government will, by law, break up retail and investment banks.

"We need real separation, real culture change. Or we will legislate. If they don't do it voluntarily, embrace the change Britain needs, then we are going to have to do it by law."