Government minister calls for banks to reform morals to earn forgiveness

Financial Sevices Secretary Paul Myners has called for moral reform in banking.

Speaking at the Financial Times Global Finance Forum on Friday, Lord Myners stressed that the government was determined to regulate the financial sector.  He also argued that regulation was not sufficient.  Banks needed to take responsibility and move beyond talk to action:

"Corporate leaders in the global financial sector have begun to talk about addressing moral failures and that is to be welcomed.  But it’s time to move beyond sound bites and to start hearing how they intend to drive moral reform within their institutions. "

Casino lending by banks had required the taxpayer to step in, bail them out, and rescue the financial system from collapse.  Some sort of repentance, a changing of behaviour, was required argued Lord Myners:

"The banks need to understand that they have lost the trust of the public, and need to change their behaviours and values in order to earn forgiveness."

His speech echoed comments made by the Archbishop of Canterbury Rowan Williams earlier in the week.

The speech can be downloaded from the Treasury website here.