Banks under more pressure this morning

The Banks once again coming under pressure this morning despite Robert Peston's explaination yesterday on his blog.

According to the lead story in the Mail,

Alistair Darling is so exasperated by the 'moral failure' of banks to help small firms and families that he is poised to toughen the law

Interesting to speculate on what exactly he can do though but maybe the mere

revelation that he is contemplating the 'nuclear option' of legal action will send a shockwave through the City and marks a major escalation in the war of words between banks and the Government

On the Today programme this morning John McFall who is the head of the te-reasury select committee was also in a bullish mood asking

“Why are the banks acting like shrinking violets? They have lots of capital, why are they not lending?

and adding that

“I don’t want irresponsible lending. But the day to day operations of the banks at the moment are a shambles. I’m firing a warning shot for the FSA, the banks, to get something done.”