An unfortunate side-effect of this activity has been to anchor the public debate firmly around the ICB's remedy of ringfencing, which was already a compromise on the original proposal of structural separation. This shift is partly a result of George Osbourne's Mansion House speech in June (see earlier post) and partly a result of recent bank lobbying. Like it or not, it means we are now discussing whether to compromise on a compromise.
Luckily, the arguments against separation and against ringfencing are nearly identical and can be rebutted just as easily. In the article below, replace "inside or outside the ringfence" with "utility or casino bank" and the arguments work just as same.
If the anti-ringfence arguments are sufficiently discredited when the ICB launches its report on Monday it will be much easier to move the debate back to separation, although the politics still look pretty challenging.
It is surprising that any politician would want to resist a set of relatively mild bank reforms after the biggest financial crisis for 80 years and a deep recession. The fact that David Cameron is having reform jitters shows just how good the industry is at talking people round in private. Whether it can do so in public and avoid either ringfencing or separation will depend on the quality of its arguments, so let's see how many of them stand up.