Banks shouldn’t be given such a hard time, says Mandelson

The Business Secretary, Lord Mandelson, has recently said to colleagues that the banking industry needs to be given a break, as banks are being given a hard time at the moment. He said that whilst banks had been given a ‘well deserved bloody nose’ but that people now needed to ease up on the banks because they needed them to succeed for the sake of the economy.

According to reports no bank executives who were involved in the irresponsible lending that resulted in the need for bailouts from taxpayers’ money will have to face criminal charges. It is also likely that Sir Fred Goodwin, former chief executive of Royal Bank of Scotland, will get to keep his huge £700,000 a year pension even though there was talk of at least some of this being clawed back by the government.

The banks have been at the centre of controversy recently, with many having to take bailouts from taxpayers’ money. The Prime Minister, Gordon Brown, has also attacked the banking industry for giving out huge bonus payouts to executives, which he said encouraged irresponsible risk taking. However, many are concerned that he has not made any apology for the government’s role in the downturn, instead putting the blame onto the banks.

Lord Mandelson stated: ‘The banks have received a well deserved bloody nose from public opinion and government, and given the impact on business and jobs I’m hardly one to sympathise. Stronger regulation requires more transparency, less complexity, fewer big bonuses and better corporate governance. But as this framework falls into place, and given the new generation of executives, banks need the space and time to get on with their work. That’s not simple but it’s the key to getting us out of the hole they have put us in.’

Tags: irresponsible lending, Bailout, Lord Mandelson, banking crisis, bank executives, royal, huge bonus payouts