We reported in mid-August that Vince Cable and George Osborne are at odds over bank reforms, in particular over the timing. Osborne is understood to have let banks believe that 2019 is a realistic timetable for the completion of the Vickers reforms – but Cable wants the internal ring-fences to be achieved as soon as possible.
And now John Cridland, director-general of the CBI, has weighed in, saying the government would be “barking mad” to press ahead with the reforms straight away. “Unilateral” changes of this nature could threaten the ability of banks to provide crucial finance for the economic recover, Cridland argued in an interview with the FT.
This is shaping up to be an impressive row; let’s see what Cable has to say in response.
UPDATE: The Treasury insist that there is no disagreement and that the timetable has not yet been discussed with the banks.
Jim Pickard
Kiran Stacey