Tories back Obama's bank reform plans

[IndianaGreen]

David Cameron's Tories are favored to win elections. Nick Clegg's Liberal Democrats are calling for breaking up the banks.

Looks like Obama may be unto something here!

Page last updated at 19:54 GMT, Thursday, 21 January 2010

Tories back Obama's bank reform plans

Shadow chancellor George Osborne has told the BBC that if the Conservatives win the general election they would follow US plans to reform banks.

Under the proposals outlined by President Barack Obama, US retail banks will face curbs on their riskier activities.

Mr Osborne said he would want to see international agreement before implementing any change in the UK.

The Treasury said it would consider the US bank reform plans "very carefully".

'Welcome move'

BBC business editor Robert Peston said Mr Osborne's comments would "generate profound fear in the boardrooms of Barclays and Royal Bank of Scotland".

Shares in both banks fell sharply on Tuesday, with Royal Bank of Scotland losing 7% - the biggest decline on the UK's main FTSE 100 share index. Barclays lost 5.9%.

http://news.bbc.co.uk/2/hi/business/8473590.stm

[HeresyLives]

1. G20 has worked on this for 2 years now.

Both leaders are simply saying it out loud for the home audience.