Labour: Banking sector reforms must not be watered down

Shadow financial secretary to the Treasury Chris Leslie voices doubts about the government's commitment to tackling the banks ahead of the government's response to the Independent Commission on Banking:

"These are vital reforms to protect taxpayers and consumers in the future which the government must get on and legislate for rapidly.

"There must be no foot dragging and no watering down of these reforms. That is why the independent commission should be asked to publish a report in 12 months on what progress has been made in implementing and legislating for these reforms.

"Vickers recommends that banks keep back a ten per cent capital buffer as a cushion against future crises, but will the chancellor be able to negotiate permission from the EU to implement this, given this government's poor track record on negotiations so far?

"And there are concerning suggestions that ministers won't implement the 'depositor preference' recommendation by Vickers which would ensure savers get their money back ahead of other bank investors in the event of a bank insolvency.

"This out of touch government is failing to properly stand up for taxpayers, bank customers or businesses."