Those that are regular readers of my blogs will recognise the news today that the government is splitting up the bailed out banks, which was always my preferred way of getting a return for the tax payer. Today marks the beginning of the long plod back to normality where the government withdraws from the private sector and the high street banks are thrown back to yesteryear when competition and customers service was paramount.

The cost of the split has not been revealed nor has a value been put on the split of banking and insurances businesses but I hope that full value is achieved, providing a healthy profit for the government and the tax payer. I hope also that the proceeds are used to begin cutting government debt and are not wasted between pitching government departments. After all it is the tax payer's money and should only be used to loosen their burden.

I for one welcome the increased competition that will hit the financial services industry after the debacle of banks considered too big to fail plundered the markets. The UK government's solution to the banking crisis was replicated in the US and I am certain that the model that the UK government is using will be closely monitored in Washington.

It's interesting that the government in the UK have stated that it will consider selling to new entrants into financial services and something I have already explored in previous blogs about Tesco. However, don't rule out some other surprising respected brands taking this chance to enter financial services. BSB Sky for example has the customer base and technology that could create a powerful Internet Bank.

The new banks created from the split will form traditional high street retail banking that although boring will be secure and able to build consumer trust. There is nothing wrong with a financial service that protects the consumer's accounts and is available to lend money based on the sound principles of payback capability. What's interesting is the government stipulation that the newly split banks must not delve into Investment Banking. This looks like an acceptance that duel capacity banking introduced in 1986 has not worked and we are now reverting to a bygone era. At the moment there is no change of law or regulation but is this just round the corner?

The policy adopted by the UK government to find a solution to the economic and banking crisis is proving effective. I have never been a supporter of government intrusion in any industry but one should give credit where credit is due and on this occasion the government should get all the plaudits and the gratitude of the tax payer.

History will be the witness of the eventual results of government intervention in the financial markets but what we can evidence today is the dawn of a new age of banking in the high street.