Newsletter October 2013: Fresh call to split banks’ investment and retail sides

BRUSSELS – Europe’s recovery and resolution plans for banks that get into trouble are not adequate when such banks are big, complex and highly connected with the rest of the financial system. Other reforms are also needed, including the separation of banks’ commercial and investment activities and increased loss-absorbing capacity, both equity and bail-in debt. That’s the conclusion of a new report* from Finance Watch, a public interest association, published in September.