18th April 2011
In The Observer, Will Hutton, at his most cutting, says the chance to rein in the bankers has been squandered.
He trawls UK political history, comparing Vickers' report to former Labour Cabinet minister Barbara Castle's failed attempt to face down the trade unions in the 1970s, billed at the time as ‘In place of strife'.
Hutton says just like Castle, Vickers has settled for an ‘unsatisfactory and unstable compromise'. He continues with the parallel suggesting that just as it took stagflation and damaging strikes before legislation finally came into to force it may take another crisis before the banks are reined in.
He wants to see more capital set aside and says that is where the battle lines should be drawn.