Vickers calls for overhaul of retail banking boards
Wednesday 19 October 2011
Sir John Vickers yesterday warned that ring-fenced retail banks' boards would require a complete overhaul to meet the demands of his banking reforms.
Appearing before the House of Lords' Economic Affairs Committee, Sir John said his Independent Commission on Banking (ICB) did not consult headhunters on a requirement for ring-fenced retail banks to have their own boards of non-executive directors. He added: "It may be that the role of non-executive in that sector needs to be transformed... In fact I'd say it clearly does. The entire relationship between institutions and the non-execs may need to be on an entirely different footing."
In its final report, the ICB said banks' retail arms need to have their own boards to safeguard customers' deposits against risks from investment banking. Critics have questioned whether there will be enough suitable candidates to oversee multiple retail banks. The call for separate, revamped boards promises a payday for recruiters and business coaches.
Non-executive directors at Royal Bank of Scotland and HBOS came in for severe criticism for letting management take near-fatal risks.
Training and standards for non-executives have already been overhauled following recommendations on governance made by Sir David Walker in 2009.
Lord Lawson, the former Chancellor of the Exchequer, told Sir John he was "baffled" by the decision to allow the different cultures of retail and investment banking to cohabit in the same bank.
Sir John said the separate retail banking board would be "very conducive" to addressing Lord Lawson's point.
- 1 Scottish referendum: So how about the English now being given a chance to split from England?
- 2 Stamford Hill council removes 'unacceptable' posters telling women which side of the road to walk down
- 3 Kim Kardashian 'naked pictures' leaked on 4chan weeks after Jennifer Lawrence 'The Fappening' scandal
- 4 Matthew Miller: American sentenced to hard labour in North Korea 'wanted to be Snowden II'
- 5 Iranian blogger found guilty of insulting Prophet Mohammad on Facebook sentenced to death
Stamford Hill council removes 'unacceptable' posters telling women which side of the road to walk down
Kim Kardashian 'naked pictures' leaked on 4chan weeks after Jennifer Lawrence 'The Fappening' scandal
Isis in Syria: 60,000 Kurds flee terror in new exodus
Iranian blogger found guilty of insulting Prophet Mohammad on Facebook sentenced to death
4Chan naked photos leak: Celebrity Twitter reactions to the mass breach of privacy
Scottish independence referendum: A nation divided against itself
Scottish referendum results: Cross-party consensus collapses amid Tory-Labour spat on the 'English question'
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Archbishop of Canterbury admits doubts about existence of God
Portuguese academic says British are 'filthy, violent and drunk'
iJobs Money & Business
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...
Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...
£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...