Risky UK banks 'should be allowed to fail', says ICB

UK banks' retail operations should be "ring-fenced" from their investment banking arms, the Independent Commission on Banking (ICB) has recommended in its interim report.

The commission was set up by the government last June to review UK banks after the financial crisis.

Head of the ICB, Sir John Vickers, says banks that take too many risks should be allowed to fail in future and not be bailed out by taxpayers.

Critics of the report say it does not go far enough.

Robert Peston reports.

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