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BBC Learning EnglishWords in the News12th September
2011Reforming the banks
Words in the News British Broadcasting Corporation 2011Page 1 of
2
bbclearningenglish.com
A commission appointed by the British government has recommended
major reforms of the
country's banks. The BBC's Robert Peston reports:
The most radical reformofBritish banks in at least a generation
has been proposed by the
independent commission on banking set up by the Treasury.
What's recommended is as close to a formal break-up of Britain's
biggest banks as it's possible
to get without obliging the likes of Barclays and Royal Bank of
Scotland to physically
separate their retail and investment banking operations.
All of Britain's leading banks would have to put retail banking,
which provides vital services
to individuals and businesses, behind a new ring fence
orfirewall.
The retail operations of Barclays and Royal Bank of Scotland,
for example, would have their
own boards, they would have to raise additional capital as a
protection against losses and
they could have very few financial links with the investment
banks also owned by Barclays
and Royal Bank of Scotland.
Up to two trillion pounds of loans and investments would end up
behind these ring fences and
the big idea is to reduce the danger that there may once again
be huge costs for taxpayers as
and when there's a banking crisis on the scale of the crash of
2008.
The biggest structural changes would be faced by Barclays and
RBS, which are likely to
warn that costs will be increased for themselves and for their
customers.
The commission, however, believes that the reduction of risks
for taxpayers means that there
would be a clear net economic gain.
Robert Peston, BBC News
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Words in the News British Broadcasting Corporation 2011
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bbclearningenglish.com
Vocabulary and definitions
radical reform of important change in the regulations designed
to improve
the Treasury the British government department responsible for
the
economy and finance
obliging requiring
investment banking the business of banks which try to sell and
buy shares and
other companies
retail banking The business of banks which deal with customers
and their
savings and loans
ring fence protected area where budgets are secured
firewall in this example, another word for protected area
where
budgets are secured
boards groups of people who control a company
capital money and possessions ready to be spent of invested
structural changes changes to the way things are organised and
arranged
More on this
story:http://www.bbc.co.uk/news/business-14877865
Read and listen to the story and the vocabulary online:
http://www.bbc.co.uk/worldservice/learningenglish/language/wordsinthenews/2011/09/110912_witn_banks.shtml
http://www.bbc.co.uk/news/business-14877865http://www.bbc.co.uk/worldservice/learningenglish/language/wordsinthenews/2011/09/110912_witn_banks.shtmlhttp://www.bbc.co.uk/worldservice/learningenglish/language/wordsinthenews/2011/09/110912_witn_banks.shtmlhttp://www.bbc.co.uk/news/business-14877865
