Managers fear bank reforms could hit economic recovery

Income investors could lose out if coalition Government forces extra levies on banks

The new Government’s planned reform of the banking sector, led by Liberal Democrat Vince Cable, could threaten the UK’s economic recovery, fund managers warn. Newly-appointed Business Secretary Cable is known for his hardline views on banks. His proposals for reforming Britain’s banking sector, as revealed in the coalition Government’s agreement last week, is likely to see him impose extra taxes, tackle “unacceptable” bonuses, and call for the separation of banks’ retail and investment operations. Jupiter financials manager Guy de Blonay says LibDem policies are the least friendly ...