The coalition needs to change its tune on banks

Vince Cable can float the idea of reviving the bonus fee applied by the last Government.?Photo: ALAMY

The United Kingdom banking could be forgiven for thinking that as it embarks on another round of "banker bashing" - an attempt to apparently coordinated for the last 48 hours to remuneration in the financial sector of United Kingdom back on the agenda policy only.


Senior Whitehall source told last week he was seeking to pressure "ratchet" on the issue. And if it comes to pass. On Friday morning, Nick Clegg has warned that the Government "withstand unnecessarily" bonus season approaches. "It is completely untenable for millions of people to make sacrifices in their standard of living to see the banks distance gratis", he said.


Later in the afternoon, David Cameron weighed a press conference in Brussels where he was officially struggling against applying a ceiling on the budget of the European Union never bloating. If premiums have been "excessive", he suggested, higher levels of taxation would surely follow.


Expect more in this vein Sunday when Vince Cable, a nobleman who fought battle to force the Financial Services Authority to publish at least part of its conclusions "secret" so far in the collapse of the Royal Bank of Scotland, takes the wave. The Secretary of business will appear on The Andrew Marr Show on BBC1 and could even floated the idea of reviving the bonus fee applied by the last Government. That was supposed to be off, but the Government still kept a plan in his pocket to brandish sometimes political necessity as now, it seems.


This noise paves the way for the Summit between banking leaders and Mr. Cable and George Osborne this week. It must be seized as an opportunity to draw a line in these political attacks more toxic.


So two things must happen. Heads of the Bank, as Eric Daniels, Director General of the Lloyds Banking Group has made in his interview in this book, need to delimit precisely how they pay their premiums, to explain that they are in a global market and revealing the election made face to this country. We are a dynamic sector providing billion pounds of tax revenues each year or we do.


On the other hand, policymakers must clearly indicate that financial institutions around the world successfully are welcome here, and we want to grow. I am afraid that they do for tactical reasons in the short term.


Says Mr. Daniels, the current political climate makes the UK an attractive to locate business growth in the Bank place. Peter Sands, Managing Director of Standard Chartered, revealed here earlier this year 7,000 new employees of the Bank has employed globally, the total of zero in the United Kingdom.


The Government is in danger of replacement of a set of problems - pride, the lax regulatory monitoring level and poor investment decisions that led to the financial crisis to another, namely the excessive regulation and de facto banking income policy defined by the politicians. If the latter takes hold and then cheers joy London competitors around the world - if Hong Kong, New York or Singapore - will be heard the length and width of the country.


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