Tories call for smaller UK banks

In a speech yesterday, Shadow Chancellor George Osborne condemned large financial institutions as encouraging risk because they are 'too big to fail'.

He proposed that the UK should have smaller banks as these would be safer. The Government immediately denounced the proposal.

"This just shows how out of touch the Tories are," declared Chancellor of the Exchequer, Alistair Darling, "doesn't George Osborne realise that the banks are all several billion pounds smaller than they were and this hasn't made any of them safer!"