David Cameron had several tricky tightropes to walk in his City speech yesterday. How to explain that you are a) in favour of laissez-faire economics but b) think Gordon Brown didn’t regulate free markets sufficiently? Or c) that we agree with Brown’s bank recapitalisation plans while d) putting clear water between the Tories and Brown on how the banks will now be run?

He didn’t do a bad job. The Financial Services Authority failed because City firms outbid it for the best brains. So raise the levy on the City to allow the FSA to compete properly, while bringing in a system similar to that at the Shareholder Executive and, as Cameron didn’t mention, the Takeover Panel, whereby top bankers are seconded to such bodies for a limited period.

Two other points Cameron didn’t mention. There are a fair few former bankers who wouldn’t mind the job of kicking their former colleagues still in employment. And a few who wouldn’t mind a career break parked on the sidelines until the M&A work comes back.

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