Speaking at the Conservative party conference in Birmingham today, Osborne said while the regulators are partly to blame, it is the bankers themselves who should shoulder the responsibility for banking failures.
He said: “If you pay yourself sums far beyond what anyone else does in any other walk of life, then be prepared to lose it when you make mistakes. We will do what it takes to preserve the stability of the financial system and protect the deposits of ordinary savers.”
Osborne also slammed the Government for its handling of Bradford & Bingley.
He said: “For a year the government knew there was a problem at Bradford and Bingley. For a year they could have put in place the solution. For a year they dithered and delayed. And once again it’s the taxpayer who in the last resort is left carrying the can.”
Osborne said if elected the Conservatives would set up a new independent Office for Budget Responsibility, to hold the Government accountable for its financial actions.