Call for new powers to ban bankers

Britain should set up a register that has the power to ban bankers if they fail to adhere to a set of standards, Barclays has told the UK government.

The recommendation is part of a raft of industry proposals to repair banking’s reputation.

The Financial Services Authority (FSA), meanwhile, asked for more powers to root out abuses and restore public trust, which it said had fallen to “extremely low” levels in the banking sector.

The FSA called for power to ban an individual on a temporary basis and said there was a “strong case” for reviewing the three-year limit within which the regulator must issue a warning notice against directly regulated staff at banks and other financial institutions.

Virgin Money, which last year bought the former nationalised lender Northern Rock, said there was “a strong case” to force the full split of retail and investment banking.

The submissions were released at the start of a three-month inquiry by MPs into banking standards following a string of scandals, including interest-rate rigging at Barclays.

Banks are battling to win back public confidence after their reckless lending led to the
2007-8 crisis.