Clegg and the Banks Head to Head

Deputy leader from the coalition Nick Clegg has warned the UK’s banks how the government will not ‘stand idly by’ and let big bonuses be paid out.

Speaking to the Financial Times, Clegg gave his opinion on the banks failed tries to co-ordinate bonus cuts and boost lending. ‘The banks should not be under any illusion this government cannot stand idly by.

It is wholly untenable to have huge numbers of people making sacrifices in their living standards, only to see the banks getting away scot-free.’

Clegg’s warning towards the banks also needs to be heeded as a warning to his coalition counterpart that the Liberal Democrats expect tough action. Bonuses this year are expected to become lower because of reduced investment banking profits.

Clegg wants banks to make quantifiable promises on lending and also to make funding available for start-up companies.