Government must act swiftly on Vickers’ banking reforms – Jo

Ahead of the publication of the independent Vickers report on Monday, Jo has pressed the Chancellor on reform of the banking system.

Emphasising continued public anger that the banks had to be bailed out at taxpayers’ expense, Jo urged Chancellor George Osborne to act promptly to introduce Vickers’ reforms to reduce risk in the banking system so there can be no repeat of the 2008 crisis.

The Chancellor replied that this Government had established the Vickers report, following Labour’s inaction on the issue, and said he would not comment on the report and its recommendations before their publication on Monday.

Commenting, Jo said:

“In this difficult economic climate, the public are continuing to pay the price for having had to bail out the banks. Given that the cavalier and risky behaviour of those very banks contributed to the global economic crisis, the conclusions of Monday’s Vickers report must pave the way for prompt reform.”

“The Chancellor must not be swayed by those with vested interests arguing for a delay, and act quickly in the public interest to ensure the same mistakes do not happen again.”

The full text of Jo’s question to the Chancellor and his reply is as follows:

6 Sep 2011 : Column 172

Jo Swinson (East Dunbartonshire) (LD): There is still huge public anger that taxpayers have had to bail out the very banks whose cavalier and risky behaviour led to the global economic meltdown. Further to the eloquent question from the Father of the House, the right hon. Member for Louth and Horncastle (Sir Peter Tapsell), when Vickers reports next week will the Chancellor ensure that he acts promptly to introduce any necessary legislation to implement the recommendations, in order to avoid a repeat of the financial crisis, and that he does not listen to the vested interests arguing for delay?

Mr Osborne: It was this coalition Government who established the Vickers report. Those questions were simply not asked by the previous Government-we are asking those questions. However, I am afraid that the hon. Lady will have to wait until Monday to hear the Government response to the Vickers report.

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