Full bank breakup may be necessary, says Bank of England.

Andrew Haldane, Director for Financial Stability at the BoE, says banks have increased in size dramatically over past decades and this – together with consolidation and concentration of the industry – had created expectations of state bailouts in times of trouble. “These expectations generate lower funding costs, in particular for the largest banks, which in turn encourages further expansion and concentration, worsening the too-big-to-fail dilemma.” He says estimates of the implicit taxpayer subsidy to the world’s banks came to $700bn (£435bn) in 2009 post-Lehman collapse.