Could we see UK banks moving overseas?

As the recently created Banking Commission looks to hit the ground running in the UK there is great concern that the idea of forcing UK banks to split themselves up between retail and investment operations could backfire. Already the likes of HSBC have stepped forward to say that while they are happy to be based within the UK they will, like so many other banks in the country, reconsider their position if they were effectively forced into carving up their banking operations.

There is no way that these multibillion pound operations will be dictated to by the UK government and effectively forced to unravel what has for some banks taken many years to build up. It seems that the banking industry is the target of a three-pronged attack from governments around the world with the introduction of new taxes, potential carve up of existing operations and a major tightening of regulations.

If the UK government continues to squeeze the banking industry there is no doubt that the sector will fight back and ultimately there will be other countries around the world more than happy to accommodate new "head offices". Surely the UK government would not allow this to happen especially when you consider that banking and financial services are the engine room of the UK economy?