Finally, the British political classes are starting to get it. Finally, a head of steam is building. Over the last week, calls to impose a proper division between investment and commercial banking have become louder, more authoritative and part of mainstream debate. Pressure for the introduction – or re-introduction – of this crucial split could soon become irresistible, however much the politicians wiggle and the investment bankers deceive.
Until now, it’s been mainly nerds like me who’ve advocated a full Glass-Steagall separation. Given the vested interests that would lose from this change, we’ve been lampooned for our “hot-headed” views. Yes – our message is awkward. Life would become difficult (and less lucrative) for a lot of powerful people, were we to prevail. Yet we “Glass-Steagallers” are right. We have history, logic and common sense on our side. And now – thanks to Barclays ex-CEO Bob Diamond, and “Liborgate” – we also have political momentum.