David Walker’s review of  Corporate Governance in the UK Banking Industry is published today. While some of its proposals are an advance, the review comes across as the financial establishment putting forward the minimum proposals they think will head off root and branch reform so they can get back to business as usual. The City will be sighing with relief and uncorking the vintage champagne today.

This puts the challenge back on to policy makers. This is not the radical road map needed to reform finance. It will not deal with the bonus culture and the risk taking that threatens to destabilise the wider economy. Nor does it make finance serve the interests of a better balanced economy. With further revelations only this week about just how close we came to melt-down in the banking system last year, we are still waiting for the regulatory, tax and governance programme that can really tackle financial excess.

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