It can no longer be 'business as usual' for the banks

The Libor scandal is a game changer for the banking industry, says Nick Reid. There needs to be serious and radical reform if we are to save London's position as a global financial centre.

The phoney war is over. As almost every financial commenter and politician has declared in the last 24 hours the Barclays Libor scandal is a game changer for the banking industry. Yesterday's disclosures have destroyed any hope that the banks may have held since the banking crisis struck that they could get back to business-as-usual with only higher capital requirements, bonus restrictions and the ring fencing of retail operations by 2019 as a payback for the crash of 2008.

What has been striking is that even usually indefatigable supporters of banking (if not of bankers or specific banking practices), such as Allister Heath of CityAM, are a constant presence on the BBC demanding that a serious and radical reform of banking practice and culture is now necessary if London is not to lose its pre-eminence as a global financial centre.

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