Thatcher changed the City for the better – but human nature led it astray

‘Margaret had no love for the banks,’ Nigel Lawson wrote in The View from No. 11. The idea that the amoral greed of the City and the banking crisis it fuelled should be blamed on Margaret Thatcher has been much bandied about this week. Let me try to put it in -perspective.

In her early years in power, Thatcher thought of the City as another enclave of the ‘wet’ public-school types who so annoyed her in the Conservative party. The high-street banks were, in her view, a complacent cartel that reported over-large profits during the 1981 recession (hence the windfall tax), refused to contribute to Tory coffers, and did nothing to promote recovery. Dining at Barclays in 1982, she harangued directors on the need for bolder lending — my father found it ‘sexy’. When a Barclays branch later leaked details of one of Denis’s companies to a Sunday paper, her hostility increased.