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Lib Dem peer resigns in protest at cave-in on deal

Andrew Grice
Thursday 10 February 2011 01:00 GMT
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The Liberal Democrats' Treasury spokesman in the House of Lords resigned last night in protest at what he saw as a cave-in by David Cameron and George Osborne in the Government's negotiations with the banks. Lord Oakeshott told The Independent: "I am afraid the banks have taken the Treasury for a ride. I decided I that felt more comfortable saying that from the back benches than the front bench."

The peer, who has been a City fund manager for the past 35 years, added: "I have borrowed £100bn from the banks in my career. You only get a good deal if they think you don't have to do a deal. The Treasury and Number 10 have been sending all the wrong signals and wrong messages during the negotiations."

Lord Oakeshott is a close ally of Vince Cable, the Lib Dem Business Secretary, who publicly backed the deal but is thought to have favoured tougher action against the banks.

Ed Balls, the shadow Chancellor, said: "It is a sad commentary on this Tory-led government that Lord Oakeshott has been forced to pay the price for daring to tell the truth."

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