Fight in the UK over Breaking Up the Banks

Vincent Cable, Britain's Business Secretary, today called for full banking separation. Cable did

not use the name Glass-Steagall, but his opponents did in

attacking him. Speaking to a consumer group, Cable called on the

Independent Commission on Banking (ICB) to review its

"ring-fencing" recommendation in favor of a full separation. "My

own instincts lie with full separation of retail and proprietary

banking," Cable said.

Cable's initiative confirms the existence of a faction in

the British establishment which is not willing to go under with

the expiring monetarist system under the current policies of the

City of London. On the other side, some of the City's most

influential figures gathered at the offices of Freshfields law

firm yesterday, to stage a debate on banking separation, which

was won by those "who oppose Glass-Steagall-style break-ups,"

{City A.M.} reported.