Business Secretary Peter Mandelson yesterday suggested that the time has come to stop "bashing" the banks, and that the government should now give the financial sector time to recover.
Many are hoping that this week"s G20 summit will result in world leaders formulating a plan for a new banking system, or at least a new regulatory framework. While some are dubbing the summit "Bretton Woods 2", others point out that the first Bretton Woods conference took 3 weeks, while world leaders will this week have around 14 hours of "face time".
Mandelson"s remarks suggest that the government has given up on its pledge to "claw back" part of Fred Goodwin"s £700,000 pension, or to bring criminal charges against some of those responsible for the collapse of the banks - although it is certainly unclear whether these were actual pledges or simply headline-grabbing insinuations.
The Business Secretary"s appeals for a truce have also been read as an attempt to shift the blame away from the government and regulators, and firmly onto the banks themselves.
