The city

There’s very little to celebrate in Downing Street these days but it must have been vodka shots all round in Chancellor Rachel Reeves’s office last week when Revolut, the City’s glossiest fintech start-up, finally secured the banking licence it has been pursuing for the past five years. Founded as a currency payments app in 2015 by two tech entrepreneurs, Russian-born Nik Storonsky and Ukrainian Vlad Yatsenko, Revolut acquired customers at an explosive rate and first sought recognition as a UK bank – able to accept deposits under the umbrella of the Financial Services Protection Scheme – in 2021.

The Epstein files lift the curtain on how power is exercised and influence traded by our financial elite. It is not a cheering sight. Business and economic gurus like the former US Treasury Secretary Larry Summers asking for dating advice from a convicted paedophile does not build confidence in the masters of the universe. Distasteful as these details are, the most telling insights into the predatory behaviour of the private-jet classes relate to how they exploit all of us, not just the vulnerable young women who catch their eye. Institutional logic does not explain Reeves’s love-in with the banks. They seem to have made a Faustian pact Peter Mandelson may blush at some of the personal details laid bare in his emails to Jeffrey Epstein.

Late-breaking exam results: many of the City’s top fund managers have failed a vital test of ‘stewardship’ — defined for this purpose as ‘the responsible allocation, management and oversight of capital to create long-term value for clients and beneficiaries leading to sustainable benefits for the economy, the environment and society’. That mouthful comes from the Financial Reporting Council’s UK Stewardship Code; asset management firms seeking to become ‘signatories’ to the code were asked to submit essays describing their own investment principles, highlighting their approach to hot-button ‘ESG’ (environmental, social and governance) issues.

Liberals have always set great store by laws and declarations. It was joked about Lord Loreburn, the liberal Lord Chancellor in the years before the First World War, that if told the Germans had landed he would immediately have taken steps to obtain an interim injunction from the Chancery Division requiring an immediate withdrawal. These days something similar seems to be happening as regards the Liberal Democrats’ approach to climate change. Last Thursday Ed Davey took aim at the City, which he has decided to add to the party’s growing list of climate change villains.