The Shadow Chancellor of the Exchequer has called for greater cooperation between the UK securities industry and the Government to help rebuild confidence in the banking sector that has been buffeted by the fallout from the credit crunch.

Speaking at the British Bankers Association at Mansion House in London last night, George Osbourne said: "In looking for the long-term solutions to the problems of the last year, I believe there is a deal to be struck between the government and the city."