UK: 2015 election to usher in banking crackdown, says Labour party

The UK’s Labour political party is expected to offer a landmark speech Friday as its leader, Ed Miliband, will vow to refer major banks to competition authorities soon after the 2015 election.

Reports say the Labour party wants the new Competition and Markets Authority, which is set to begin operations in April, to review major lenders in an attempt to possibly breakup some of the UK’s largest banks. The politicians reportedly want to more clearly define banking market structures and foster stronger competition.

The party declined to specify whether it will present a specific cap on the size of banks, but according to information leaked Tuesday night, the Labour party would like a market share cap of 25 percent for the banks.

The anticipated speech would follow-up on the Office of Fair Trading’s own look into the health of competition in the lending industry, a study the OFT said would aid the new CMA in deciding whether to launch its own formal probe.

Full Content: The Guardian

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