Protecting the public or protecting the banks?

The Vickers Report recommends ring-fencing the retail banks. The point being not to constrain retail banking, but to keep the other, risky stuff away from that part of banking that the economy, and the public,  relies upon.

The CBI response comes out against the idea and talks a lot about costs, but doesn’t seem to mention any actual figures at all. Could this be because the costs of bailing out the banks after a crisis absolutely dwarf any marginal cost to ring-fenced banks of doing business?

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