Banking Reform

David Winnick Excerpts

Thursday 14th June 2012 Commons Chamber

[Mr Hoban]

My hon. Friend, who is right to point out the lack of an apology from the Opposition for their role in the crisis, has persistently raised account portability. She will know that Sir John Vickers considered this matter in the report but opted for improvements to the switching process to make it easier and more straightforward for customers. It is important that we pursue that, although full account portability will be an option if the former does not prove effective. We also welcome the work that the FSA and the Bank of England are doing looking at the requirements on new entrants to the banking system to ensure that both the conduct and prudential requirements are appropriate and not disproportionate.

[Mr David Winnick (Walsall North) (Lab)]

On banking reform, would it not have been appropriate to make at least some reference to the outright greed of those who head the banks or to the millions of pounds that some of them get each year? Why no such condemnation—or is it the case that this Tory-led Government could not care less? What is all this business about “We’re all in it together”? It does not appear so, does it?

[Mr Hoban]

The hon. Gentleman should reflect for a moment on what happened when his Government were in power. Bankers were able to take their bonuses in cash in the year they were paid, while Lord Mandelson said that he was “intensely relaxed” about the filthy rich. What we have done since we came to office is put in place the toughest and most transparent pay regime of a major financial centre and ensured that shareholders have a stronger voice over bank pay. We have tackled the problem, which the previous Government simply neglected and allowed to fester and develop, thereby contributing towards the crisis that we have seen in the banking sector.