Ex-Barclays boss: Problem of ‘too big to fail’ still exists

Putting in place an effective bank resolution regime as well as eliminating regulatory arbitrage are two of the steps needed to solve the ‘too big to fail’ problem in the financial services sector, according to the former chief executive of Barclays Bank, Bob Diamond.

It is five years since the collapse of Lehman Brothers, which triggered a market meltdown in Sept 2008 and forced the Government here to introduce a bank guarantee.

Mr Diamond, in an opinion piece in the Financial Times, argues that even though some important financial market reforms have been implemented over the past few years, the problem of ‘too big to fail’ still exists.