http://www3.u.tv/BusinessNews/index.asp ... 03/01/2009
Vince Cable, the Liberal Democrat Treasury spokesman, has proposed a long-term reform of British banking so that a firewall is built between domestic banking and riskier internationally traded services.
In an interview with the Fabian Review Cable says: "In the longer term the banking sector is going to have to be reconstructed on very different lines. I don't think it's going to be possible to have high street banks that are simultaneously operating like casino-type investment banks."
I think this is a good point. There is a huge conflict of interests between the average saver who puts a few thousand pounds or dollars in a savings account for a rainy day, who wants security of their cash as a major priority, and the attitudes taken by the investment banks, with highly ss;eculative investments, usually overseas, and in complex financial instruments that are totally removed from how people *think* their savings are being invested.
Is he right? or is this a knee-jerk reaction to the a few bad decisions by a few crazy fund managers?