The London Daily News

Britain's strongest bank, HSBC has threatened to quit its London base if the Government moves to break up large banks.

Stuart Gulliver, head of the Canary Wharf-based bank's investment banking division, made the warning at a banking conference.

He said the plans caused "grave concerns" and it has:

"...has significant implications clearly for where we may choose to headquarter our institution."

"I want to be crystal clear. Our preference is to be headquartered in the UK."

During the election the Liberal Democrats campaigned for separating their traditional commercial banking activities from their riskier investment banking business.

An independent commission is currently examining the power of the main high street banks and will look at ways of increasing competition.