Why Bank Of England Wants Banks' Business Split

Bank of England (The Central Bank Of The Uk) Governor Mervyn Allister King who is also the head of Monetary Policy Committee, says that, we need to rethink how our financial institutions should be "structured and regulated" in order to prevent the emergence of another economic crisis in future.

King was speaking in reference to Royal Bank of Scotland Group plc (ADR) (Public, NYSE: RBS) and Heritage Financial Group (Public, NASDAQ: HBOS), which the British Government could not allow to fail. Banks should not be encouraged to become so large, that they are 'too important to fail', they If they could not be allowed to fail, why were they in the private sector, King wondered.

"It is hard to see how the existence of institutions that are 'too important to fail' is consistent with their being in the private sector," King said.