“We must break up British banks to ensure that taxpayers are not forced to underwrite unnecessary risks," said the Liberal Democrat Shadow Chancellor.
Commenting on reports that President Obama is set to toughen his approach to Wall Street regulation on the same day as Goldman Sachs posted profits of $13.39bn and paid its staff almost 50% more, Vince Cable said:
“Barack Obama understands that the bonus culture in the banking system has got entirely out of hand and must be curbed.
“The days of excessive risk-taking on the back of taxpayers’ money must stop now.
“While Obama’s proposals to prevent the worst elements of proprietary trading are welcome, this is merely a half-way house.
“We must break up British banks to ensure that taxpayers are not forced to underwrite unnecessary risks and to make the system more competitive. What is clear is that we would not be acting alone – we are already lagging behind the US.”