Liberal Democrat Treasury spokesman in the Lords, Lord Oakeshott, has resigned because he was unhappy with the Project Merlin deal.
The long running negotiations for the project came to an end yesterday with an announcement the UK’s biggest banks will increase business lending this year by six per cent, increase disclosure around remuneration with some bonuses being restricted.
According to a report in the Guardian, Oakeshott stood down after criticising officials working on the deal.
He said: “If this is robust action on bank bonuses, my name is Bob Diamond.”
Oakeshott’s party colleague and Business Secretary Vince Cable has backed the deal but says the underlying causes of excessive bonuses would not be tackled until Sir John Vickers’ Independent Commission on Banking reports in September.
The Bank of England will monitor the banks’ lending and issue quarterly progress reports.
Speaking on Channel 4 news last night Treasury chief secretary and fellow Liberal Democrat Danny Alexander said Lord Oakeshott had resigned from the role by mutual consent.