Can anybody control the UK banking sector?

Over the last 18 months we have seen the unions, government and investors trying to force the hand of the UK banking sector although ultimately nobody has been able to take power away from this very influential area of the UK economy. While historically the UK was very big in mining and car manufacturing to name but two areas of business, there is no doubt that the financial industry is heading shoulders above any other sector in the UK economy and wields significant power over governments and consumers.



Initially, after injecting billions upon billions of pounds of taxpayers money into the banking system, it had been thought that the government would be able to influence decisions and remuneration packages in the wider industry. However, when you consider that the £10 million package put aside for Stephen Hester, the government appointed chief executive of the Royal Bank of Scotland, was directly against what we hear in the press, is anybody really able to stand up to the sector?



Regulators have been given more power, the Treasury is set to get more involved in regulating the industry and Alistair Darling has issued threat after threat after threat. However, unfortunately perhaps the government have missed a "trick" by attempting to take the Bank of England out of the loop, as this is one of the only institutions which has any real sway over the banking sector and is respected across the board.