"BREAK UP THE BIG BANKS" SAYS VINCE CABLE

10.47.32am GMT Wed 3rd Mar 2010

The news that President Obama is demanding that the big banks in America be split up, to protect small investors from the excesses of the investment market, is an echo of the advice that Shadow Chancellor Vince Cable was giving our Government even before the banking crisis broke.

"Much still needs to be done to sort out the banking system," said Vince Cable. "The Government (and the Conservatives) are desperate to return to 'business as usual.' I believe this to be an utterly wrong approach."

He went on to add: "There is still a major problem of credit supply to good British businesses and local companies and the Government has failed to use its position as shareholder to prevent banks lurching from recklessness to extreme conservatism."

He concluded by saying: "The banks must start lending to business again and the large banks with their casino banking practices need to be broken up."

North Devon MP Nick Harvey comments: "I am still getting complaints from local small businesses about unfair banking practices. In a recent case, a business built up over 5 years which never missed a payment on its agreed overdraft limit, and had full bookings for the next two years, suddenly found that the bank had decided to revalue the business and as a result put them into administration.

"A viable business, good credit performance, sound management, full bookings, but still not good enough for the bank. Shameful!" concludes Nick.