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”
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 […]
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?
Mr. Sensible
Resigned, sacked, or mutual consent? We don’t know…
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…
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