Banks should break up – or be forced to

Barclays bank should follow the lead of Swiss bank UBS and wind up its investment banking business, says Matthew Lynn - whether it wants to or not.

There was a time when investment banking was the one business everyone wanted to be in. Graduates flocked to the main banks. Every financial institution tried to recreate itself as a trading operation, complete with wheelers and dealers and lavish bonuses.

Not any more. This autumn, Swiss giant UBS announced it was dramatically scaling down the investment banking unit it spent billions creating over the last decade to concentrate instead on its Swiss retail bank and its wealth-management divisions.

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Matthew Lynn

Matthew Lynn is a columnist for Bloomberg, and writes weekly commentary syndicated in papers such as the Daily Telegraph, Die Welt, the Sydney Morning Herald, the South China Morning Post and the Miami Herald. He is also an associate editor of Spectator Business, and a regular contributor to The Spectator. Before that, he worked for the business section of the Sunday Times for ten years. 

He has written books on finance and financial topics, including Bust: Greece, The Euro and The Sovereign Debt Crisis and The Long Depression: The Slump of 2008 to 2031. Matthew is also the author of the Death Force series of military thrillers and the founder of Lume Books, an independent publisher.