Profound reform needed for banks

A commission set up to review the banking system in light of the recent financial crisis has said that the industry needs "profound reform".

The Future of Banking commission, which is chaired by Conservative MP David Davies and includes Liberal Democrat Vince Cable, proposed the break-up of integrated retail and investment banks.

It also said that high street banks should produce a "living-will" that explained to customers what would happen if the institution was to fail.

Other ideas were "safe-haven" accounts that would only invest savers money conservatively in stable assets and an end to the commission driven selling of non-banking products such as pet insurance.

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