Cable said because the banks are effectively underwritten by the state, they are more or less “state guaranteed,” which is why the “enormous payments [are] so offensive”.
Barclays is expected to report annual profits of £5.8bn and reward employees with bonuses of at least £2.7bn.
Cable advocates radical change to make UK banks more competitive, safer and to rein back the bonus culture, although UK banks are expected to award £6bn in bonuses this year.
The political gulf widens between Cable’s continuing anger over the banks and the deal agreed after Project Merlin and Chancellor George Osborne’s willingness to draw a line under the deal, which many felt fell short of its aims.
Lord Oakeshott, the Liberal Democrats Treasury Spokesman in the Lords quit in protest at the agreed Merlin deal last week, adding the banks had “taken the Treasury for a ride”.
