Liikanen review calls for ring-fencing of banks’ investment arms

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European banks with investments and trading constituting a large share of business activities should have proprietary trading and other 'high-risk activities' assigned to a separate legal entity, a team headed by Erkki Liikanen, the governor of the Bank of Finland, has recommended.

The findings constitute one of five main recommendations in the Liikanen review, which today (October 2) presented the findings of an 'expert group', set up in 2011 by the European Commission (EC) to investigate

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