Coalition fails “moment of truth” on bankers’ bonuses

Last month, Lord Oakeshott describe Project Merlin as "a real moment of truth for the coalition on fairness". The peer has tonight resigned over the Government's deal on banking.

Last month, Lord Oakeshott described the Project Merlin negotiations as “a real moment of truth for the coalition on fairness“. The peer has tonight resigned over the Government’s deal on banking saying “‘if this is robust action on bonuses, my name’s Bob Diamond“.

Speaking on Newsnight on January 11th, Lord Oakeshott said:

“This is a real moment of truth for the coalition on fairness. We can’t have a bonus bonanza in the age of austerity.”

Today, George Osborne announced a deal that let the banks off the hook by delivering a low level of transparency on bonuses and agreeing only a gross lending target at odds with the coalition agreement’s focus on net lending. But Lord Oakeshott also criticised the continued payment of bonuses:

“Whether those are paid in cash or shares, they still mostly come out of our pockets. I see the agreement says they have to wait two more years to cash in.

“A multi-million pound bonus is still a multi-million pound bonus whether you have to wait two years to buy the yacht.”

The big battle will now move on to the structure of the banks with Vince Cable tonight telling the Guardian:

“We have a fundamental problem of excessive profits in the banking system which has got be dealt with through structural reforms. We cannot continue to have a situation where banks continue to be underpinned by the taxpayer. That will deal with the problems of very large bonuses that are unacceptable”.

He may find the path blocked once again by the Conservatives in the coalition. David Cameron famously said that the City was in his blood while figures released earlier today reveal the Conservative party’s reliance on City funding since Cameron became its leader.

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23 Responses to “Coalition fails “moment of truth” on bankers’ bonuses”

  1. Suzanne Richards

    RT @leftfootfwd: Coalition fails "moment of truth" on bankers' bonuses as peer resigns http://bit.ly/gBmT4R

  2. Miles Weaver

    RT @leftfootfwd: Coalition fails "moment of truth" on bankers' bonuses as peer resigns http://bit.ly/gBmT4R

  3. MICHAEL SPARLING

    RT @leftfootfwd: Coalition fails "moment of truth" on bankers' bonuses as peer resigns http://bit.ly/gBmT4R

  4. JamieSW

    RT @leftfootfwd: Coalition fails "moment of truth" on bankers' bonuses as peer resigns http://bit.ly/gBmT4R

  5. David Graydon

    RT @leftfootfwd: Coalition fails "moment of truth" on bankers' bonuses as peer resigns http://bit.ly/gBmT4R

  6. Deborah Segalini

    RT @leftfootfwd: Coalition fails "moment of truth" on bankers' bonuses as peer resigns http://bit.ly/gBmT4R

  7. Shamik Das

    Coalition fails "moment of truth" on bankers' bonuses as peer resigns: http://bit.ly/gBmT4R by @wdjstraw on @leftfootfwd

  8. Jos Bell

    RT @shamikdas: Coalition fails "moment of truth" on bankers' bonuses as peer resigns: http://bit.ly/gBmT4R by @wdjstraw on @leftfootfwd

  9. AltGovUK

    RT @leftfootfwd: Coalition fails "moment of truth" on bankers' bonuses as peer resigns http://bit.ly/gBmT4R

  10. Martin Johnston

    RT @leftfootfwd: Coalition fails "moment of truth" on bankers' bonuses as peer resigns http://bit.ly/gBmT4R

  11. Jules Clarke

    RT @leftfootfwd: Coalition fails "moment of truth" on bankers' bonuses as peer resigns http://bit.ly/gBmT4R

  12. Duncan Weldon

    RT @shamikdas: Coalition fails "moment of truth" on bankers' bonuses as peer resigns: http://bit.ly/gBmT4R by @wdjstraw on @leftfootfwd

  13. Deer Hunting: Primos Truth Cam 35 Camera

    […] Coalition fails "moment of truth" on bankers' bonuses | Left Foot … […]

  14. salardeen

    RT @leftfootfwd: Coalition fails "moment of truth" on bankers' bonuses as peer resigns http://bit.ly/gBmT4R

  15. downinjamaica

    RT @leftfootfwd: Coalition fails "moment of truth" on bankers' bonuses as peer resigns http://bit.ly/gBmT4R

  16. High pay and bankers’ bonuses issue will not go away

    […] anytime soon. Not only mainstream media, but social media is alive with it. For example, this from Left Food Forward. Share Tweet Posted in […]

  17. Tacitus

    So Osborne has protected bankers interested and save British society from the horrors of the wealthy from being deprived of their just desserts. You mean the Tories have protecte those who bankroll them in other words. I am not surprised.

    I suppose I should be horrified, but I’ve been around politics to accept this is the way things go – the Tories protect the rich. It is what they always have done and what they always will do. Let’s not be fooled by Cameron’s PR gimmick of “Caring Conservativism” – that’s like saying you have hand-reared a vegan lion!

    Oh – and let’s not put too much hope in the Lib-Dems opposing all this. Sure, they may gasp in horror and tut in the appropriate places, but since when have the Libs shown any level of dedication, commitment and sincerity in their fight for the poor and oppressed?

  18. Mr. Sensible

    Resigned, sacked, or mutual consent? We don’t know…

  19. Éoin Clarke

    The LDs have 4 and a bit years to go.. they lose ministers every 2-3 months… that means that on current rates 17 more LD minsiters will lose their posts…

    By the time the next election comes nearly 40% of the party will have been sacked or quit government…

  20. AK Brightman

    I found this blog… an interesting idea that people could/should withdraw money from banks if they are unhappy with pay, bonuses and excessive profits…

    http://anthonytrew.blogspot.com/2011/02/how-to-make-banks-and-bankers-listen.html

  21. Boris: The bankers' best friend | Left Foot Forward

    […] was last week forced out from his role as Lib Dem Treasury spokesman for standing up to the government over bonuses; as […]

  22. Boris's scaremongering over 'banker bashing' not backed up by evidence | Left Foot Forward

    […] Democrat peer Lord Oakeshott even resigned as a Treasury spokesman over the government’s deal on banking, saying: “If […]

  23. How bankers’ bonuses are contributing to the new credit crunch | Left Foot Forward

    […] also: • Coalition fails “moment of truth” on bankers’ bonuses – Will Straw, February 9th […]

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