The Telegraph reports Tyrie, chairman of the Parliamentary Commission on Banking Standards, said the legislation presented to parliament on Monday designed to “electrify” the ringfence between retail and investment banks was “so weak as to be virtually useless”.
He made the comments after the Treasury’s announcement that it is ready to adopt the majority of his commission’s proposals, including ensuring reckless bankers face jail and 100% clawback on their bonuses.
Chancellor George Osborne said the government would implement the commission’s main proposals and pledged to change legislation where necessary.
However, the Telegraph said Tyrie complained there was a marked difference to the government’s initial backing of proposals to give regulators the power to break up banks and the actual amendment before MPs.
“It would barely give banks pause for thought,” he said. “Only when the government’s formal amendments have been laid before Parliament will we be able to assess them. The amendments put forward to electrify the ringfence demonstrate the need to remain vigilant.”
