The Mayor of London, Boris Johnson, has said that attacking UK's banking sector as a matter of government policy is "nuts". In a passionate defence of the City and Britain's financial sector, Johnson said that a vibrant banking sector was vital to support businesses who want to raise capital.
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Speaking at the Google Zeitgeist conference near London, Mr Johnson said that the UK's financial sector produces 9pc of Britain's annual GDP and 13pc of "value added" in the economy. "I think it is completely nuts for people to want, as a matter of public policy, to attack the financial sector," he said. "We need a great City where business can raise capital in order to expand and I will continue to protect that."
Mr Johnson's remarks are in stark contrast to the position of the new Business Secretary, Vince Cable, who described bankers as "Arthur Scargills in pinstripes". The new Government has announced that there will be an inquiry into the future of banking in the UK which will report next year. The commission will consider proposals on breaking up banks between retail and investment operations. It will also look at ending proprietary trading where banks use clients funds to make investments. Mr Cable has said he supports the break up of banks and says that the UK should act unilaterally if necessary. Banking leaders believe that such a move will destroy the UK banking sector where the main players all offer "universal services" across retail and investment.
Mr Johnson's remarks are in stark contrast to the position of the new Business Secretary, Vince Cable, who described bankers as "Arthur Scargills in pinstripes". The new Government has announced that there will be an inquiry into the future of banking in the UK which will report next year. The commission will consider proposals on breaking up banks between retail and investment operations. It will also look at ending proprietary trading where banks use clients funds to make investments. Mr Cable has said he supports the break up of banks and says that the UK should act unilaterally if necessary. Banking leaders believe that such a move will destroy the UK banking sector where the main players all offer "universal services" across retail and investment.
