Europe focused on union rather than breaking up banks

Experts may recommend this week that European banks should separate retail banking from their riskier investment arms to make them safer and soften the impact of financial crises.

But European Union regulators are unlikely to pursue such a radical reform at a time when they are trying to build a banking union to underpin the euro currency and the financial sector.

The European Commission asked the group of experts, led by Bank of Finland Governor Erkki Liikanen, to explore a reform of bank structures in the wake of the 2007 global financial crisis.

via Business feed http://www.scmp.com/business/banking-finance/article/1051392/europe-focused-union-rather-breaking-banks