Make bank reforms law now, insists Sir Mervyn

Bank of England governor Sir Mervyn King said yesterday that banking reforms should be passed into law as soon as possible to prevent the plans being watered down.

The bank boss hinted he would have preferred a complete separation of retail and investment banking, rather than the ring-fencing proposed by the Vickers commission.

But he said the plans were “the game in town” and should be enacted quickly to “prevent further lobbying to water down the proposals”.