Government, banks and “Project Merlin”

The Merlin agreement was the outcome of negotiations between the banks and government on a number of issues. Its intention was a combination of ‘peace’ talks and ‘reparations’. The Banks wanted a more normal relationship with government (and public). The Government wanted signs of renewed commitment from the banks to the public good, reflecting the public support given to them during the crisis and since. The banks provided about £200 million to support the establishment of Big Society Capital.