Osborne's ring fence will be made of cheese wire

Power to break up the banks.

So Osborne is going to "reset the banking system". A difficult thing to do with trust between Westminster and the banks at an all time low. How is he going to do it?

Well, first there's going to be a ring-fence: but it's to be not so much electrified as made of cheese wire - if banks don't respect it, regulators will be able to break them up.

It's not just about the fence though - he also plans to make the banking sector more competitive by making it easier to switch bank accounts, and by introducing a new regulator who'll aim to help out new competitors who want to enter the game. There are also talks over how consumer power can be increased, to hold the banks in check.

There is a plus side for the banks: the leverage ratio won't be changed beyond 1:33, but as might be expected, they have not taken kindly to the news:

Anthony Browne, the head of the British Bankers' Association said:

This will create uncertainty for investors, making it more difficult for banks to raise capital which will ultimately mean that banks will have less money to lend to businesses.

"What banks and business need is regulatory certainty so that banks can get on with what they want to do, which is help the economy grow. This decision will damage London’s attractiveness as a global financial centre.

"Uncertainty" isn't really the issue though - banks have been under changing regulation since 2008. The main problem for the banks will now be flexibility, according to Credit Suisse analysts (via FT Alphaville):

Reducing options to transfer capital and funding – As we understand it, banks will be under tight scrutiny to implement strictly a ring-fence. This will clearly limit the flexibility for banks when setting-up their ring-fence plans and limit options to transfer capital and funding. Although this is hard to estimate at this stage, this could increase the overall costs of the reform for the industry. We currently do not have an impact in our estimates.

If ring-fence is to work, it needs to be enforced - but as banks make their money by finding their way around such restrictions, a truly impenetrable fence'll cost. Here is a summary of the estimated hits to the economy via FT Alphaville:

Estimates costs from implementation – The draft legislation published in October 2012 highlighted the following costs for the broader industry and economy: (i) on-going costs of £2-5bn per annum, which compares to our total profit £26.1bn for the five listed UK banks in 2014E; (ii) one-off transitional costs of £1.5-2.5bn; (iii) negative GDP impact of 0.04-0.1%; (iv) reduced tax receipts of £150-400mn (this assumes all bank costs are passed onto the consumer); and (v) a reduction in the value of the government’s shareholdings in RBS and Lloyds Banking Group in the range of £2bn to £5bn relative to a ‘do nothing’ baseline scenario (compares to current value of £45.1bn).

If banks don't respect the fence, regulators will be able to break them up. Photograph: Getty Images
Niina Tamura
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“Anyone can do it, I promise you!”: meet the BBC’s astronaut-ballerina

Why science needs to be more open to women, minorities - and ballet.

Whether dancing on stage with the English National Ballet or conducting an experiment for her PhD in quantum physics, 29 year-old Merritt Moore often appears a model of composure. But in last Sunday's opening episode of BBC2's Astronauts: do you have what it takes? we got to see what happens when high-achievers like Merritt hit breaking point.

Merritt is one of 12 candidates attempting to win the approval of Chris Hadfield, former commander of the International Space Station. Along with her fellow competitors, who include mountaineers and fighter pilots, the dancer has had to face a series of gruelling tasks designed to measure her potential to operate well in space; from flying a helicopter, to performing a blood test on her own arm.

Many of these tasks left Merritt far outside her comfort zone. “I’ve only failed my driving test three times and crashed every car I’ve gotten into - but I think helicopters are different?!” she joked nervously before setting off to perform her first-ever helicopter-hover. Yet after a shaky start, her tenacious personality seemed to pull her through. “I’m good at being incredibly persistent and I don’t give up,” she told the space psychologist when asked to name her strengths.

Merritt also believes it is persistence (and hours of practice) that have allowed her to excel in two disciplines which are typically seen as requiring opposite traits: ballet and science. While studying for her PhD at Oxford, she has continued to perform as a professional dancer around the world. It's a stunning feat by any measure, and when I talk to her on the phone this weekend I ask whether it’s only possible because she’s some kind of genius? “No!” she exclaims, with a winning mix of genuine shock and self-deprecation. “I’m as far from a genius or a natural dancer as you can get - everyday I just feel like flailing mess! My thought process is that if I can do it anyone can do it, I promise you!”

But there is one thing that Merritt thinks might be holding back others from pursuing a mixed career like hers – and that’s the way the scientific world is run.

“They kind of self-select themselves,” she says of many science-professionals she’s met. "You get some people who are not incredibly understanding of those who perhaps approach [physics] in a different way, or who need a different type of schedule," she says. "They look down on people who are different from themselves, which is really difficult; I think that’s why women have difficulties, and I think that's why minorities have difficulties."

A report from the Royal Society on Diversity in Science would appear to support Merritt’s conclusions. It showed that women are significantly underrepresented in senior scientific roles, and that black and minority ethnic graduates are less likely to go on to work in science than their white peers.

So how can these trends be reversed? For Merritt the answer lies as much in schools as it does with targeted scholarships and support groups. Science education needs to be re-branded, she says, so that thinking creatively is actively encouraged from a young age; “It makes no sense to divide it up and say everyone either has an analytic mind or a creative mind." Simply leaning a set of very technical facts from a textbook drives her “bonkers” - but “when there’s passion behind something then anything is possible.”

If she could one thing about physics education, Merritt says she would switch things up so that the “exciting bits” get taught first - such as the latest thoughts on quantum computing or DNA repair. Then if students do choose to continue, they’ll know why they need to study the boring, rigorous parts too. “You’re like right, I need to learn about a harmonic oscillator because that’s how I’m going to understand this quantum computer.”

More cross-fertilisation between science and arts could also help the ballet world, she believes. “I can visualise my centre of mass, how gravity is working on different parts of my body, and how the torque effects my turns – and I think that’s a massive help,” Merritt says of her dancing.

But that’s far from all. When performing she often finds herself thinking about the more bizarre and “mind boggling” sides to physics: “Why is there all this dark matter in the Universe? What is that?! - when that’s going on in my mind, my legs become free because it means I’m not thinking about whether I look bad, or if something is right or not. I’m just inspired - and I want my dancing to be inspiring rather than self-critical all the time.”

Focusing on actions rather than self-image was definitely something Merritt's parents encouraged from a young age. Her dad’s work as an entertainment lawyer in LA meant he was particularly alert to the stereotypes that were being laid on young girls. And, as a result, Merritt and her sister grew up without TV or fashion magazines. Her dad was even initially worried about the mirrors in ballet classrooms

But self-criticism is also very hard to avoid when your antics are being broadcast to the nation on Sunday night TV.

“When you see yourself on screen you just feel incredibly vulnerable,” she says, “they are getting the raw emotions of how you’re reacting to stuff that you’ve never done before in your life!”. What Merritt’s episode one journey showed however, is that knowing yourself makes it easier to bouceback from nerves and self-doubt. And that perhaps more of us should be encouraged to believe that you don't have to choose between the stars on stage or the ones in space. 

The next episode of BBC2's Astronauts: have you got what it takes? will air on Sunday 27th August at 9pm.

India Bourke is an environment writer and editorial assistant at the New Statesman.