HSBC has hit back at UK rumors of breaking up the biggest banks saying that it will move its headquarters out of London and the UK if the suggestion goes through.

The breaking up of banks, separating their riskier investment activities from their more traditional commercial activities, has been a point of interest for the UK’s coalition government following the 2008 financial collapse that was brought about by risky banking activity in the US.

There is a growing sense in the UK that major banks, such as Lehman Brothers in the US have grown too big to fail, because of the massive repercussions such failures would have on national economies.

When banks know that they are of such significance, they take bigger risks because they know they’ll be bailed out if they go bankrupt, argue the Liberal Democrats in the UK.

The independent banking commission, set up in June, has been looking into breaking up the banks in order to prevent a government-obligated bail out of the financial institution in the future.

HSBC, which has received no public funds in the wake of the recession and continues to operate with sound financial results, has said that the commission’s suggestion is unfair.

A HSBC spokesperson said that it would be unfortunate if the commission made a decision “that causes the banks that actually didn't take any money from any government anywhere in the world to have to move their headquarters”.

No other government in the world is considering breaking up the banks, making the UK government’s proposal decidedly radical.