Conservative Party in Hock to City, Says Nick Clegg
THE GUARDIAN: Liberal Democrats say Tories' financial dependence on bankers has quadrupled under David Cameron

Nick Clegg will today accuse the Tories of being "completely in hock to the City" as he says the party has quadrupled its dependence on funding from the sector since David Cameron became leader.

Figures produced by the Liberal Democrats today show the Tories have raised more than £15m from companies and individuals connected to the City since Cameron was elected leader in 2005.

The party accepted just £3.9m from the City between 2001 and Cameron becoming leader. Half of the City donors were not recorded donors before then.

Ten percent of the Tory candidates in the coming election are bankers or have worked in the sector, compared with 1.5% of the country as a whole. >>> Patrick Wintour | Monday, May 03, 2010

Osborne Walks a Fine Bank Line
British opposition Conservative party Shadow Chancellor of the Exchequer, George Osborne, delivered his address to delegates at the Institute of Directors Annual Convention in London on April 28, 2010. Photo: The Wall Street Journal
THE WALL STREET JOURNAL: The U.K.'s Conservatives are bashing banks in public. Behind the scenes, though, they're striking a more conciliatory tone with London's financial community.

George Osborne, the Conservatives' candidate to become Chancellor of the Exchequer, has been reaching out to top U.K. bankers to assure them that, despite the party's populist rhetoric, a Conservative government won't declare war on banks, according to people who have heard his pitch. >>> David Enrich and Alistair MacDonald | Monday, May 03, 2010

After bailout, the Barclays Bank Chief’s pay? £63m! And I bet the man's worth every penny! – Mark

Bank Shares Tumble on Obama Crackdown
TIMES ONLINE: Shares in Barclays and Royal Bank of Scotland (RBS) tumbled this morning after sharp falls on Asian markets in the wake of President Barack Obama’s pledge last night to wage war on American banks in the biggest regulatory crackdown on financial institutions since the 1930s.

Barclays’ shares fell a further 6 per cent to 266p this morning and are trading 14.4 per cent lower than at the start of the week. RBS, the state-owned lender, lost a further 4.45 per cent today to 33.75p.

London's FTSE 100 index of leading shares tumbled by 52.40 points to 5,282.81 in mid-afternoon trade, adding to yesterday's 85.70 point decline after the US President made his announcement.

There are fears that Mr Obama's proposals could force a radical restructure of American banks - a move welcomed by George Osborne, the Shadow Chancellor, who hailed Mr Obama’s intervention.

He said: “I have said consistently that we should look at separating retail banking from activities like large-scale proprietary trading — and that this was best done internationally. Coming on top of growing agreement on a bank levy, it shows that Conservatives are part of an emerging international consensus on these issues.”

The Treasury said that it would study Mr Obama's moves carefully.

The radical proposals would limit the size of institutions and bar them from the most cavalier trading practices. >>> Emily Ford | Friday, January 22, 2010

Finger-wagging Is Just Not Enough, Mr President
TIMES ONLINE: Apparently, during his big speech on financial reform last night, there were audible groans on the floor of the New York Stock Exchange when President Obama said that he had “always been a strong believer in the power of the free market”.

This was presumably because that particular element of the President’s audience thinks he is anything but. Applied to their own corner of the US economy, though, why they think as they do is anyone’s guess. One year on from the collapse of Lehmans, it looks to be business as usual on Wall Street, with big bonuses in the offing amid signs that, as Mr Obama said, the lessons of the crisis have been ignored by some.

But for all his finger-wagging, for all his promises to undertake serious financial reform, the President has actually done remarkably little so far.

Apart from trying to convince Americans that big government bailouts of financial institutions have come to an end, last night’s speech was all about trying to get that process back on track, which is why a key element of Mr Obama’s plans — a new consumer protection agency to oversee financial products such as mortgages and personal loans — was again flagged.

Yet the measure looks some way from ever reaching the statute book due to a formidable lobbying effort by the financial services industry.

Other elements of Mr Obama’s proposals, such as measuring and seeking to regulate systemic risk, are even further away. Similarly, while the Administration has tabled proposals which would ensure that many over-the-counter derivatives are traded on regulated exchanges, centrally cleared and more accurately reported, these plans are a long way from being enacted.

Part of the problem is that Mr Obama’s fellow Democrats, despite controlling Congress, seem far more determined to push through healthcare reforms before they ever turn their attention to an overhaul of financial regulation.

All of this is hugely regrettable and helps to explain why so many ordinary folk on Main Street believe that the President is in thrall to Wall Street.

Meanwhile, in fairness to those NYSE traders who groaned at Mr Obama’s comment last night, the President is giving them good reason to doubt his free-market credentials. >>> Ian King, Business commentary | Tuesday, September 15, 2009