http://www.bbc.co.uk/news/uk-10751263

So, still a lying gobsh1te then...

Even if the Treasury had listened to the warnings and had been able to do anything else it would have turned out the same. The only solution was to have cut the leverage of the banks some years prior, but that would never have happened. As for the Tories, nothing would have been any different. They had committed themselves to labour spending plans in the years prior to the election. They would have been even more laissez-faire than New Labour if possible, so the banks could be in a marginally worse state. Nothing that they could have done in the few months before the problems would have been sufficient to avert the crisis.

I agree with the basic point (that little difference could have been made once the credit crunch got rolling) but I'd argue this bit. Conservatives are by their nature conservative. Kind of goes with the territory . IMO I don't think a tory government would have put through some of the deregulation that Labour did, or at least they'd have kept much more of it 'in house' as it were. In the end it wouldn't have changed the fact the banks were basing vast profits and economic forecasts on money that didn't actually exist but it's possible the high street banks would have been forced to be somewhat less cavalier. The state would still have had to bail them out but not by as much. However whether 'only' bailing the banks out for say £120 billion rather than £180 billion would have made any difference in the long run is a purely academic question.
Jon

While the conservatives might be a little more conservative they are more anti state than pro regulation. In fact the de regulation that kicked off this whole mess was brought in by Maggie and while New Labour did nothing to stop that neither did the Tories even mention it. Only Vince Cable mentioned it and even then not particularly in time to prevent any problems. Any reforms that would have had an impact would have been necessary in 2000 to 2003. That said no government has been successful in preventing any problems in the banks. All have had different problems.

As far as Gordon. He has probably moved on and probably does not even regard that he even made a mistake.