Lords take Vickers to task over robustness of plans
Vickers faced fierce questioning on Independent Commission on Banking’s final report and recommendations; incentive for banks to cheat the system discussed
John Vickers, chair of the UK Independent Commission on Banking, appeared before the House of Lords on Tuesday to answer questions about his banking ring-fencing plans.
Lord Nigel Lawson, a former UK chancellor under Margaret Thatcher, warned the ring-fencing scheme will provide incentives for bankers to 'game' the system and find ways around it, in the interests of shareholders. "This is a fine model," he said. "[But I am] sceptical of the model's robustness in the real world." Lawson made the
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