Miliband calls for banks to be broken up and creation of a state investment bank The Labour leader called for sweeping reform of the industry including a break-up of the big five banks and extra funding to investigate bankers suspected of fraud. "If we're serious about banking regaining the status of teaching, medicine, law, we have to act," he told an audience of bankers at the Co-op. Describing investment banking as "socially destructive" and retail banks as lacking competition Mr Miliband said three planks of reform were necessary: separating retail and investment banking, creating a British Investment Bank to help small businesses and toughening regulation. "We need a banking system where bankers are not given an incentive to focus on the short-term return," he said. We need to take excessive power away from the banks so they serve the interests of the consumer again. He added: "Companies that think consumers have no choice are more likely to behave in predatory ways. We saw that with News International [former owners of the News of the World], we see it with our banks. While welcoming the proposals contained in the Vickers Report, Mr Miliband criticised the Government for not going far enough in implementing them. He said a full split between investment and retail banking was required.