A draft report by the Independent Commission on Banking issued Monday said that it is unlikely they will require banks which combine retail and investment operations to be broken up. Instead, they may have to have to, "ring-fence" each division.
The restructuring may be costly for banks such as Barclays and Standard Chartered. Barclays, HSBC (HBC) and Standard Chartered (STAN) have all said they would leave London if proposals by Sir John Vickers and the committee to reform the UK banking system were too restrictive.
Lloyds (LYG) was the main loser of the review and may have to dispose of more branches, according to published reports. The bank is already in the process of selling a 600 branch network, according to The Wall Street Journal.A final report by the Independent Commission on Banking is due out in September and reforms are likely to take place in 2012. --Written by Maria Woehr in New York.
To contact the writer of this article, click here: Maria Woehr. To follow the writer on Twitter, go to http://twitter.com/newsgirlmw. To submit a news tip, send an email to: email@example.com.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV