No second chances for banks, says Which?Banks can't take the lead on financial reform

07 May 2009

Banks pay up

Now the banks have lost the appeal we think it's time they paid up

Which? has demanded that bungling bankers are prevented from driving forward regulation of the financial sector, following the publication of a highly critical report. 

The Treasury Select Committee's Banking Crisis: dealing with the failure of the UK banks levels blame for the fiscal meltdown at banks. 

It states that a 'risk-taking' culture permeated parts of British banking, and concluded that bankers made an 'astonishing mess' of the financial system.

Which? view

Which? personal financial campaigns manager Doug Taylor said: 'The banks brought about their own downfall, so unless we want history to repeat itself they mustn't be the architects of reform. It's now time for a new order in the banking world based on stability, genuine competition and the interests of consumers.

'We've been calling for major changes to the way banks operate and the committee's damning indictment of the banks' incompetence couldn't be a clearer message that the status quo can't continue.'

Other findings

The Treasury Select Committee also criticised the merger of Lloyds and HBOS, noting that it had been referred to as a 'shotgun wedding' in some quarters. 

But it praised the government's decision to allow Northern Rock to expand lending and lauded the Financial Services Compensation Scheme for its response to the collapse of several UK banks. 

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