Banking shake–up needed say unions

Published on 08/09/2012 00:55

Union leaders are to call for a major shake-up of the banking sector to tackle concerns over lending, executive pay and the UK’s slow recovery from recession.

The Trades Union Congress will press for a series of changes at its annual congress next week, including a state investment bank, greater diversity in the banking system and a crackdown on bonuses.

General secretary Brendan Barber said: “Banks caused the crash. Their problems are still driving the eurozone crisis. They are still failing to provide the finance that Britain’s productive sectors need.

“Yet the government is still tiptoeing round reform. And initiatives designed to kick-start lending or boost growth end up helping banks, rather than the real economy.”