A sweeping and utterly typical performance from Vince Cable in his interview with the
Times (£) today. Not only does he plunge his teeth into the exposed flesh of the bankers (criticising them
for their “special pleading” over banking reforms), but he also offers another overarching diagnosis of the British economy (there won’t be a repeat of 2008’s financial crisis, he says,
in case you were wondering, but slow growth could be a problem). I feel like a spoilsport for pointing out that, only four months ago, the Business Secretary was actually warning that
“you can see” another financial crash happening.
But aside from Cable’s fiery rhetoric, it’s worth noting that his demands are now more restrained than they have been. Last month, he was still conjuring up the prospect of a complete, Glass-Steagall-style separation between investment and retail banking. Now, as we noted on Coffee House yesterday, the Business Secretary is simply pushing for the proposed ring-fence between the two to be implemented as swiftly as possible. The question is whether this is Cable shifting more towards George Osborne’s position, or whether Osborne will meet Cable half way. In any case, as James argues in a cover piece for tomorrow’s magazine (more on which soon), the politics of squeezing the bankers and the rich is about to hurry into plain sight.
And there’s another question: what is to be done with Cable himself? His demands may be more restrained, but this outspoken, self-confident minister is several shades different from the neutered figure that emerged from last year’s Telegraph sting. I can’t see David Cameron moving him from the Business department in next year’s expected reshuffle, but plenty of Tories will want Vince keeping in check somehow.
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