Future of Banking report out soon, says McFall

The Future of Banking Commission is due to publish its report this weekend, according to one of its authors, John McFall, former Labour MP and chairman of the influential Treasury Select Committee.

Speaking this week at the Mansion House in the City of London, McFall hoped the report would contribute to a much needed debate over banks following the 2008 credit crunch and the ensuring financial crisis.

McFall, the long-standing MP for Dunbarton who stood down at the general election, said there was a lot to do to ease the 'sense of social betrayal' felt by the public towards banks given the taxpayer bailouts of RBS and Lloyds had contributed to the country's budget deficit.

On the tax rises and spending cuts planned by the coalition government, McFall said, 'the success of the fiscal retrenchment depends on its fair distribution'.

But he added that without a recovery in the financial sector there could not be a recovery in wider society.

Launched by Which?, the consumer organisation, the commission has been chaired by leading Conservative backbencher David Davis, MP for Haltemprice and Howden, supported by McFall and Vince Cable, Lib Dem business secretary.

Its aim was to look at the financial crisis from the view of normal people as well as bankers. Three public sessions were held in February and March this year, with evidence from senior bankers, politicians, regulators, trade unions and business leaders.

It was announced yesterday that Conservative MP Andrew Tyrie has been elected as McFall's successor as chairman of the Treasury Select Committee, which oversees the government's economic policy.