Public anger growing at ‘irresponsible’ banks

As the rescue package was unveiled in the Commons, MPs from across the House condemned their excesses and called for greater constraints in future in return for the Government’s help.

Frank Dobson, a former Health Minister, said these “severe constraints” should encompass the pay and bonuses of bank bosses, adding that the measures unveiled by Alistair Darling would be acceptable to the public only if they were accompanied by “strict national and international regulation” to prevent further economic catastrophes.

Rob Marris, Labour MP for Wolverhampton South West, added that the banks had “made a right mess of things”.

Iain Duncan Smith, the former Tory leader, urged the Chancellor to ensure that the injection of public cash was not “good money going after bad’’.

And John McFall, Labour chair of the Commons Treasury Select Committee, said that the measures were necessary only because of the lack of “openness and honesty’’ from the banks about the amount of bad debts on their books.

Earlier, Paul Kenny, general secretary of the GMB union, had said that the huge sums involved in the bail-out would generate more public anger.

He added:”I do not think that the politicians fully comprehend the depth of anger felt by the public at the irresponsible behaviour by the top directors of the UK banks which has necessitated this multi billion bail out.”

While the Prime Minister insisted that it was right to come to the banks’ rescue, he did put the blame for the crisis squarely at the door of senior executives and the reckless lending which he said took place at many of the troubled institutions.