Who has led this? Read this article in the Telegraph. It says that there has been more or less a u-turn on the approach to banking within the first week of Government. In many ways it is a return to a more sensible policy, with reform but without prejudice.
Splitting the Investment and Retail banks, although a good idea, is simply not possible unless it is done on a global level and that was never going to happen.
Poor St. Vince has also seen his role on the banking committee reduced as that forum is no expected to be heavyweight and give and high-powered recommendations.
All in all the banks must be please and their share prices will react this week to this news. My hunch is that there is a good working relationship between ex-Investment banker David Laws and George Osborne - they have quickly decided there are other fish to fry than the banks.