HSBC writes to Chancellor to plead for Vickers reform delay
Douglas Flint writes to George Osborne to request that the 2019 split deadline is delayed 
The chairman of one of Britain’s greatest banks has urged the Government to delay programs to formally separate the retail and investment banking arms of lenders.
Douglas Flint, the chairman of HSBC, is understood to have written to George Osborne and Mark Carney, the Governor of the Financial institution of England, to request that the 2019 deadline for the split is delayed until a probe by the competitors authority is completed.
The recommendation to insulate large street banking by ringfencing banking institutions riskier investment banking arms was manufactured by Sir John Vickers in 2011, who led the Independent Commission on Banking (ICB).
Even though Sir John’s suggestions have currently been enshrined into law, Sky Information said that Mr Flint had expressed concern that a probe into the market by the Competitors and Markets Authority (CMA) could contact for an even bigger shake-up.
Banks are presently spending large quantities of money in preparation for the introduction of the legal ringfence, but there are fears the CMA’s could press banks to dispose of specified operations.
Final month, the CMA set out plans to investigate the personal recent account industry and solutions for tiny businesses simply because of a lack of competition.
HSBC is explained to be concerned about the structural reforms that could consequence from the probe, which is expected to final 18 months, and the extra expenses they would entail.
The ICB was set up in the wake of the economic crisis with the aim of stopping another taxpayer-funded bail-out and shaking-up competitors on the substantial street.
Its suggestions have received fierce criticism from several quarters, such as leading businesses and believe tanks.
A report by Policy Exchange last year claimed that forcing banking institutions to split their operations could put at threat free of charge banking.
HSBC did not respond to requests for comment.