The Conservatives have announced their plans for reform of financial regulations and the regulatory system in the wake of the global financial meltdown.

The headline suggestion is that by scrapping the Financial Services authority and passing those powers to he Bank of England would somehow improve the system.

Sadly the Tories once again fail to address the front line problem and that is the power of big financial institutions and the greed mentality that led to over exposure and excess risk taking in an unstainable financial market place.

They do not address the fact that once banks start doing well again they will start acquiring other businesses and growing their financial portfolios once more.

That is why we need to address this empire buildingand limit the expansion of banks developing across all financial sectors, but essentially risking financial stability by moving into high risk areas. And that is why Vince Cable and the Lib Dems are right when they say we should be taking a lead amoving to break up the nationalised banks into appropriate small units that can focus solely on specific banking sectors ie retail (high st) banking seperate from merchant banking, investments etc.

What stopping the Tories from supporting this practical sensible approach? Perhaps they are too close to these institutions, too reliant on them for financial support. Perhaps too many vested interests.