On Saturday, lawyers warned the Britain’s biggest banks to make them safer arrangements by ring-fencing their retail arms from their risking trading operations.

"A bank is a bunch of systems with a legal structure on top. It isn't practicable to say that one part or another is a subsidiary. It's like telling someone to divide their body in half," said Clifford Chance lawyer Simon Gleeson.

Market analysts who were polled by Reuters claimed that the UK banks should separate both their retail and their investment departments. This would keep them safe in case the investment sector fails to generate the money back.

British Financial Minister, George Osborne appreciated this proposal. However, lawyers claimed that this can become very difficult for the banks to manage as there are risks involved in this.

The bank commissioning headed by Sir John Vikers of Oxford University is investigating regarding the loopholes and to make the system more safe and competitive.

The ring-fencing model would be utilized for protecting the normal savings people make in the bank. The retail and the investment would be two separate things the banks would deal with. This would create a safer environment and make the situation competitive.

European regulators want the banks to raise more capital. However they have not commented on ring-fencing and trading arms separately.