NEW YORK - John Vickers chairman of the Independent Commission on Banking (ICB) confirmed that the ICB was considering desperate measures which would split retail and investment banking operations. This plan colloquialized as Regulation Plan E named after the U.S. Regulation E. As investors wonder when these attempts by government for increased regulation will end.
Royal Bank Group declined more than 3% as regulation could result in the breakup of the company. To see the RBS report click here.
Barclays PLC is down over 2% and Deutsche Bank is down nearly 1%. Vickers also wanted the banks to set more money aside for capital emergencies.
Lloyds Bank is down nearly 5%, despite not having an investment bank division but investors feel there is a chance the company can be broken apart.
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