Cable offers banks an olive branch
By politics.co.uk staff
Vince Cable reassured banks that the Liberal Democrats are not their enemies today as he explained the party’s plan to separate their retail and investment services.
Speaking at Thompson Rueters, he mapped out the party’s policy in the run-up to the general election campaign.
“I have said some harsh things about the banks in the past – going back a decade or more – warning that their lifestyle was dangerously unhealthy; arguing against misguided demutualisation, irresponsible mortgage and consumer lending,” he said.
“But I haven’t come here today to rehash the past, claim to be a new Nostradamus, allocate blame or give a sermon. The Liberal Democrats are not anti-bank or anti-banker.
“We recognise that some banks and bankers emerge with credit from this crisis – HSBC, Standard Charter, the Co-op Bank and some, but not all, mutuals, led by Nationwide,” he said.
“We also recognise that banks have a key role as the heart of a capitalist economy, transforming savings into loans and managing financial transactions with minimum friction and cost.”
He focussed on semi-nationalised banks as the key to the UK economy.
“These banks can be tools of government policy – securing and maintaining capital to good, solvent small and medium sized businesses that are vital to our economic recovery,” he said.
“Put simply: RBS and Lloyds are key to supporting the British economy.”
