London: British banks should only be forced to break up if there's international agreement on the issue, according to a report supported by Vince Cable, the coalition government's new Business Secretary.
That contrasts with comments Cable made in a February 23 speech in London, when still in opposition, that if necessary the UK should proceed "unilaterally" in breaking up the "existing big banks" to ensure the safety of the financial system.
While separating banking operations from units that take consumer deposits would help reduce the risk of another banking crisis, it would only work if other countries agreed, the Future of Banking Commission, convened by the UK consumer group Which?, said in an 82-page report.
Request to examine
Cable, 67, was one of three members of the House of Commons on the eight-strong commission.
As Business Secretary, Cable will be a member of another commission, which the government has asked to examine the case for separating retail and investment banking. It will have a year to report, according to last month's Conservative-Liberal Democrat coalition agreement.
"Vince's views are as per the views of the report," Peter Vicary-Smith, Which? CEO, said in an interview.
"Everyone has signed up to the conclusions of the report. We have no minority views expressed in the report."
Treasury Minister Mark Hoban welcomed the report in a statement and said the government's inquiry will consider "the complex issue of separating retail and investment banking."
Cable's office did not return calls requesting a comment.
The Which? panel spent two months interviewing bank executives, including Royal Bank of Scotland Group CEO Stephen Hester and HSBC Holdings Chairman Stephen Green, as well as members of the Bank of England and the Financial Services Authority.
