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Richard Lambert gives speech opposing the breaking up of banks; Lambert speech (cont'd) SOT- Another is the development of new sources of finance / The Treasury has been thinking about ways of opening the syndicated debt and commercial paper markets to medium-sized companies, and providing loan and equity capital to growing businesses / That would be a welcome move / And I'm old enough to remember the great work that ICFC did for many years after the war in providing loan and equity capital for growing companies, and would give three loud cheers if that idea were to be relaunched in one way or another / Then comes the question of pay / As John Varley of Barclays has recognised, 'Remuneration is clearly one of the touchstones about restoring trust' / If the pay of nurses, teachers and public sector staff is frozen because of the financial crisis banks must behave with sensitivity in the area of pay / But of course there is a dilemma / In John Varley's words: 'On the one hand we must recognise our obligations to society in how and what we pay. On the other hand we have to make sure we field the best teams. Talent is not a commodity' / Two years ago, 15 of the worlds leading economists gathered in New Hampshire to consider how to fix the financial system / In The Squam Lake Report they argue that the link between the risks financial institutions take and the costs they impose on taxpayers does give society a legitimate interest in the structure of executive compensation at systemically important firms / So such firms should be obliged to hold back a significant share of senior managers' pay for several years - which would be forfeited if the company goes bust or receives government assistance / There is endless room for debate about how much and how compensation should be set aside in this way / Paul Tucker of the Bank of England has come up with the interesting idea that deferred pay should take the form of debt rather than equity / That way, there would be no up...