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Britain has already demanded a ring fence around banks' retail lending and deposit taking to protect them from risky investment banking.
In a preliminary report in April, the Independent Commission on Banking suggested limiting the use of consumer deposits to finance the investment banking operation by setting up a so-called ring fence around the consumer operations.
Stuart Gulliver, the chief executive of HSBC, has said the bank will have to think "long and hard" about its operations in the UK once the government publishes its rules on erecting a ring fence around its high street operations.
While the white paper is likely to outline the intricacies of how wide and how high the ring fence around high street operations needs to be, it may also push ahead with a controversial reform known as "depositor preference".
At last year's Lord Mayor's dinner at the Mansion House in the City of London, Osborne had talked about the "British dilemma" – a banking sector that was so large that it could put the economy at risk – and endorsed the proposals by the ICB, chaired by Sir John Vickers, for a ring fence around high street banks.
All of which brings us to the present and to the imminent removal of the ring fence around Gazprom shares.
Similar(54)
Chancellor George Osborne will be forced to abandon the Government ring fence-around the NHS and pension budgets and further cut public spending if he is to keep pledge not to raise taxes after the 2015 election, a leading think tank has said.
Reforming the banking sector is expected to be a key theme of chancellor George Osborne's Mansion House speech next month as the government reaffirms its intention to force banks to erect ring fences around their high street operations.
After the latest fence-jumping incident, the agency added a second, low, outer-ring fence around the main fence.
The Chancellor, George Osborne, was accused by Labour of going soft on the banks today, as he unveiled plans to "electrify" the ring-fence around retail banks.
In the planned devolution of public-health services to local decision-makers in 2013, the current ring-fence around central-government grants for drug treatment will be lost.
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