Lib Dems call for halt on risking taxpayers' money

Date: 22nd January 2010

Vince Cable, treasury spokesman for the Liberal Democrats, has called for an end to banks taking risks with taxpayers' money.

Mr Cable said: "The days of excessive risk-taking on the back of taxpayers' money must stop now."

It follows an announcement from US president Barack Obama that he is to become stricter with Wall Street regulation.

The treasury spokesman argued that it was time for Britain to also take a tougher stance with its financial institutions as the country is now "lagging behind".

"We must break up British banks to ensure that taxpayers are not forced to underwrite unnecessary risks and to make the system more competitive," he added.

"What is clear is that we would not be acting alone - we are already lagging behind the US."

Mr Obama's announcement came as Goldman Sachs reported $13.39 billion (£8.23 billion) profits and paid out almost 50 per cent more to its staff.