UK Treasury proposes radical bank reforms

More radical measures are needed to tame the banking sector, the UK Treasury said in a report last month. “We are clear radical reform is necessary, but it cannot be achieved immediately: if it were done too quickly the cost to banks and to their customers would increase too quickly to be absorbed. But it has to be done,” said the report, entitled Too Important to Fail – Too Important to Ignore.

The report added the bailout of banks during the crisis has created a moral hazard; effectively an