Bank break-up powers 'bad economics'

The government's reform proposals have created "massive uncertainty" in the banking sector according to the chief executive of the British Bankers Association.

Anthony Browne told BBC News that whilst the industry was "completely committed to reform" the threat to break up banks that fail to follow new rules to ring-fence risky investment operations from High Street activities was "bad economics".

Chancellor George Osborne said the banking sector had to be "reset" to empower and protect the consumer.