Cable concerned over stability of banking system

The Business Secretary, Vince Cable, has expressed concern about the appointment of the investment banker, Bob Diamond, as the new chief executive of Barclays.

Mr Diamond has been criticised in the past for earning huge City bonuses and was described by the last government as "the unacceptable face of banking".

Mr Cable said that the combination of traditional banking with investment banks poses serious issues for the future stability of the whole system.