(Bloomberg) — Britain took a step into uncharted territory this year, aiming to make its banks safer. But it might have just driven risk to places where it’s less manageable than before.The experiment — the result of an analysis of how the financial crisis damaged Britain’s economy — began Jan. 1. Big lenders were “ring-fenced”: retail deposit-taking was legally separated from riskier activities, primarily investment banking. Advocates compared ring-fencing to the U.S. Glass-Steagall act, passed after the 1929 crash.Britain’s big international players, Barclays Plc and HSBC Holdings Plc, are now barred from moving much of their domestic earnings into their …read more
Source:: Yahoo Finance
