“Alistair Darling is so exasperated by the ‘moral failure’ of banks to help small firms and families that he is poised to toughen the law. The Chancellor is studying legal options to end the ‘unacceptable’ behaviour of the banks towards companies struggling in the downturn. The revelation that he is contemplating the ‘nuclear option’ of legal action will send a shockwave through the City and marks a major escalation in the war of words between banks and the Government. … Monday’s Pre-Budget Report will include measures to tighten lending rules and limit profits on lending as a first step towards reining in banks and imposing greater oversight on their activities. But Mr Darling also has a range of legal options open to him, including the creation of a ‘bank enforcer’ to supervise their lending behaviour, or the imposition of a cap on the interest charged for business loans.” (11/21/08)