Britain’s business secretary Vince Cable stepped up his Liberal Democrat party's attacks on the finance industry today, announcing an inquiry into corporate-governance rules, with takeovers and pay both in the spotlight.
In a speech to the party conference today in Liverpool, Mr Cable stuck by his criticism of bankers. "I make no apology for attacking spivs and gamblers," he said.
Mr Cable promised to "shine a harsh light into the murky world of corporate behavior," and accused company directors of forgetting their duty "when a fat check is waved before them."
The five-day convention of the junior governing party, which ends today, has been dominated by criticism of financial services and the rich.
Liberal Democrat leader Nick Clegg, the deputy prime minister, spearheaded calls for banks to show restraint over bonus payments and lend more to business and showcased a plan to clamp down on tax avoidance and evasion.
Mr Cable denied a rift with the Conservative Party, the senior partner in the coalition, saying there was a "crystal clear" agreement on banks to "make them safe and make them lend."
He also cited Bank of England governor Mervyn King in support of his argument that "we just can't risk having banks that are too big to fail."
Aides said yesterday the speech had been seen by prime minister David Cameron's office.
The business secretary also announced plans to allow employees of Royal Mail to buy at least 10 per cent of shares in the company when the government legislates to allow private investment.
The UK's 360-year-old mail service is struggling to compete with TNT NV of the Netherlands, Deutsche Post AG's DHL Worldwide Express unit and Business Post Group Plc as European Union rules phase in competition for deliveries between 2011 and 2013.
Mr Cable's department will begin looking next month at what he called "short-termism and shareholder disengagement," trying to find ways to "put responsible shareholders back in the driving seat of our economy."
Areas under examination will include whether investors have enough chances to vote on takeovers and whether directors' pay encourages mergers.
"Why should good companies be destroyed by short-term investors looking for a speculative killing, while their accomplices in the City make fat fees?" Mr Cable said.
Bloomberg