City of London

I would point out to the hon. Gentleman that there is no evidence at all that the financial crisis that so catastrophically affected this country and others was the result of the activities of hedge funds. I simply say, as gently as I can, that although one wants ultimately to protect the financial services industry—in the European Union, London is the jewel in the crown—the huge danger, of which we have already seen some evidence, is that it could create a regulatory structure that persuaded our financial institutions to locate abroad. It is a fine balance, and I am sorry to say that there are indications that what is coming out of Brussels—I think that Lord Myners would agree—is excessive and potentially destructive of the financial service industry in London.