What now for banks?

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Vince Cable in the New Statesman:

Banks should either surrender their protection and compete like other firms, or be protected and have their profit regulated like utilities.

And since there is not a bank that is not benefiting from pubic guarantees right now, there is only one answer, which is profit regulation.

For those who wish to break free a UK Glass Steagall Act should provide that option. But woe betide those who invest in them: there will be no safety net.

Why the heck can’t the Treasury get this? And Alistair Darling too?