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| Version 3 | Version 4 |
|---|---|
| Cameron sets out plans for City | Cameron sets out plans for City |
| (about 2 hours later) | |
| The Tories would change the culture of Britain's banks and restore the Bank of England's power to oversee levels of debt, David Cameron has said. | The Tories would change the culture of Britain's banks and restore the Bank of England's power to oversee levels of debt, David Cameron has said. |
| The markets have been governed for too long by the "destructive idea that you can take what you get, however you get it", he said in a speech. | The markets have been governed for too long by the "destructive idea that you can take what you get, however you get it", he said in a speech. |
| The Bank of England had lost banking expertise to the regulator the FSA, and it should be restored, he said. | The Bank of England had lost banking expertise to the regulator the FSA, and it should be restored, he said. |
| Plans to overhaul UK banking rules were set out by the City watchdog last week. | Plans to overhaul UK banking rules were set out by the City watchdog last week. |
| In a speech at a conference on the regulation of capitalism at the London Stock Exchange, Mr Cameron said the system of financial regulation Gordon Brown set up as chancellor had "completely failed". | In a speech at a conference on the regulation of capitalism at the London Stock Exchange, Mr Cameron said the system of financial regulation Gordon Brown set up as chancellor had "completely failed". |
| Bank's role strengthened | Bank's role strengthened |
| He said the Financial Services Authority (FSA) had been forced to "obsess about products, processes and procedures" while neglecting banks' business models - "what they were buying, at what price and with what debt". | He said the Financial Services Authority (FSA) had been forced to "obsess about products, processes and procedures" while neglecting banks' business models - "what they were buying, at what price and with what debt". |
| The Bank of England had been stripped of its ability to ensure banking credit was kept within responsible limits - unable to "call time" on overall levels of debt in the economy, he said. | The Bank of England had been stripped of its ability to ensure banking credit was kept within responsible limits - unable to "call time" on overall levels of debt in the economy, he said. |
| In a question and answer session after the speech he said, after 1997, the Bank of England had become "a very specialised monetary policy authority with quite an academic view on life". | In a question and answer session after the speech he said, after 1997, the Bank of England had become "a very specialised monetary policy authority with quite an academic view on life". |
| We are the party of law and order. So we are the party to bring law and order to the financial markets David Cameron | We are the party of law and order. So we are the party to bring law and order to the financial markets David Cameron |
| Its bosses were no longer former bankers, its banking expertise had been lost and it was effectively "de-banked". | Its bosses were no longer former bankers, its banking expertise had been lost and it was effectively "de-banked". |
| Mr Cameron said the Bank of England's role in regulating debt should be restored and that expertise rebuilt. | Mr Cameron said the Bank of England's role in regulating debt should be restored and that expertise rebuilt. |
| It would be in charge of regulating overall debt in the economy and would set out concerns in a letter to the FSA, which would be "obliged" to take its view into account when setting how much money banks must hold. | It would be in charge of regulating overall debt in the economy and would set out concerns in a letter to the FSA, which would be "obliged" to take its view into account when setting how much money banks must hold. |
| Regulation 'hostility' | Regulation 'hostility' |
| The party was considering giving it the power to go into banks and tell them to "sort themselves out" if they did not have enough capital or were borrowing too much. | The party was considering giving it the power to go into banks and tell them to "sort themselves out" if they did not have enough capital or were borrowing too much. |
| "It used to be said that one twitch of the governor's eyebrow would be enough to get our banks to behave responsibly. Our plans will restore the power of the governor's eyebrow," Mr Cameron said. | "It used to be said that one twitch of the governor's eyebrow would be enough to get our banks to behave responsibly. Our plans will restore the power of the governor's eyebrow," Mr Cameron said. |
| He said people did not want to abandon markets, but wanted to reform them. | He said people did not want to abandon markets, but wanted to reform them. |
| You wouldn't know from Cameron's warm words this morning that he was the leader of a party that has spent years opposing any regulation Angela EagleTreasury minister | |
| "We are the party of law and order. So we are the party to bring law and order to the financial markets. We are the party of social responsibility. So we are the party to bring social responsibility to the financial markets." | "We are the party of law and order. So we are the party to bring law and order to the financial markets. We are the party of social responsibility. So we are the party to bring social responsibility to the financial markets." |
| He added: "For too long, our market has been governed by the destructive idea that you can take what you get, however you can get it. We need to change the culture in the City so people understand they don't just have a responsibility to themselves - but to society too." | He added: "For too long, our market has been governed by the destructive idea that you can take what you get, however you can get it. We need to change the culture in the City so people understand they don't just have a responsibility to themselves - but to society too." |
| Last week Lord Turner, the head of the Financial Services Authority, unveiled proposals to overhaul banking rules - aimed at stopping banks lending too much in the boom years, and also increasing the regulation of hedge funds. | Last week Lord Turner, the head of the Financial Services Authority, unveiled proposals to overhaul banking rules - aimed at stopping banks lending too much in the boom years, and also increasing the regulation of hedge funds. |
| It also backed an overhaul of bonus systems at financial institutions. | It also backed an overhaul of bonus systems at financial institutions. |
| The report followed the onset of the financial crisis which brought down several banks - including Northern Rock - and has left some of the world's biggest banks unable to survive without help from taxpayers. | The report followed the onset of the financial crisis which brought down several banks - including Northern Rock - and has left some of the world's biggest banks unable to survive without help from taxpayers. |
| For the government, Treasury minister Angela Eagle said: "You wouldn't know from Cameron's warm words this morning that he was the leader of a party that has spent years opposing any regulation, and just weeks before the credit crunch hit Britain, was calling for total deregulation of the mortgage market." | |
| Liberal Democrat spokesman Jeremy Browne said the Conservatives had been "hostile to regulation of financial services" for ten years and the public "remains suspicious of David Cameron because he appears to have no guiding values or consistency". | Liberal Democrat spokesman Jeremy Browne said the Conservatives had been "hostile to regulation of financial services" for ten years and the public "remains suspicious of David Cameron because he appears to have no guiding values or consistency". |