“UK banks are facing the backstop threat of a break-up if they fail to comply with the proposed ringfencing of their retail operations as British lawmakers ponder ways to exert more pressure.

The Parliamentary Commission on Banking Standards, which is due to publish a report assessing the government-backed legislation late this week, is set to endorse the core Vickers proposals. But it is also leaning towards recommending a complete separation of retail and investment arms in case banks do not fully implement ringfencing, people with knowledge of the talks said.”

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