Cable must break up banks

Robin Hepworth has warned the UK faces another financial crisis if the major retail banks are not broken up. Hepworth, a senior fund manager at Ecclesiastical, says banks will have no incentive to act more cautiously if they remain at their current size.

“I have high hopes Vince Cable will break the banks up. They are too big to fail, there is still moral hazard in the system,” he says. “We need to split the high-risk casinos from the payment system, otherwise we will end up where we were 18 months ago. “People say the UK should not act alone, but it is only us and America that have this situation. We have a good relationship with the US, so we could work together to find a solution,” he adds. Hepworth, who has positioned his £69m Higher Income fund for a double-dip recession since Q4 2009, believes UK growth will be slow at best. ...